uWERNMBn  OOCUMEHT; 
**■  cOLLtCTlON 

MARIS  1986 

j^^ty  ot  Massachuseft. 


sftory  Copy 


Chief  of  Bureau  of  Statistics  of  Labor. 


INDUSTRIAL 


CONCILIATION  AND  AEBITEATION. 


COMPILED  FEOM  MATERIAL  IN  THE  POSSESSION  OF  THE 
MASSACHUSETTS  BUREAU  OF  STATISTICS  OF  LABOR, 
BY  DIRECTION  OF  THE  MASSACHUSETTS 
LEGISLATURE,  CHAPTER  43, 
RESOLVES  OF  1881. 


BOSTON: 

i^anti,  ^berg,  ^  Co.,  Printers  to  tje  Commontoealtfj, 


BT 


CAEROLL    D.  WRIGHT, 


CHIEF. 


117  Fkanklin  Street. 


1881. 


CONTENTS. 


Page. 

Introduction   5-6 

I.  —  Industrial  Conciliation  and  Arbitration  in  England  .  7-75 

Preliminary — Conseils  des  Prud^ hommes     ....  8-10 

Thie  establishment  of  permanent  boards  in  England    .       .  10-13 

The  Nottingham  System   13-18 

The  Wolverhampton  System   18-22 

Arbitration  and  Conciliation  in  the  Manufactured  Iron 

Trade   22-27 

Arbitration  and  Conciliation  in  the  Coal  Trade   .       .       .  27-80 

Arbitration  in  Other  Industries   31-33 

The  Acceptance  of  Awards   34-36 

Advantages  of  Arbitration   36-39 

DiflBculties  of,  and  Objections  to,  Arbitration     .       .       .  39-43 

The  Relation  of  Trades  Unions  to  Arbitration    .      .       .  43-48 

Arbitration  and  the  State   48-53 

Conclusion   53-55 

Appendix  A   55-56 

Appendix  B   56-61 

Appendix  C   61-66 

Appendix  D   66-68 

Appendix  E   69-75 

II.  —  Industrial  Conciliation  and  Arbitration  in  Massachu- 

setts     ....    76-104 

III.  —  Industrial  Conciliation  and  Arbitration  in  Other 

States   105-170 

Conciliation  in  the  Pittsburgh  Iron  Trade   ....  109-119 

Arbitration  in  Pennsylvania   119-153 

Arbitration  in  Ohio   154-160 

The  Straitou  and  Storm  Board,  New  York  City  .      .      .  161-170 

Conclusion   170-173 


INDUSTEIAL  CONCILIATION  AND  ARBITEATION. 


This  pamphlet  has  been  compiled  under  the  authority  of  the 
following  resolve  of  the  Legislature  of  Massachusetts,  Chapter 
43,  Resolves  of  1881;  — 

Resolved,  That  the  Chief  of  the  Bureau  of  Statistics  on  the  Subject  of 
Labor  be,  and  he  is  hereby,  instructed  to  prepare  forthwith,  from  material 
now  in  the  possession  of  the  Bureau,  a  pamphlet  upon  industrial  conciliation 
and  arbitration  ;  and  in  order  that  the  information  contained  in  such  pam- 
phlet may  be  freely  disseminated  among  the  persons  most  interested,  the 
said  Bureau  shall  cause  an  edition  thereof,  not  exceeding  five  thousand 
copies,  to  be  printed  and  distributed  within  the  Commonwealth. 

lApproved  April  6,  1881.'] 

The  material  in  our  possession  upon  the  subject  of  industrial 
conciliation  and  arbitration  relates  to  what  has  been  done  abroad 
as  well  as  in  this  country,  and  may  be  conveniently  divided  into 
three  parts,  relating,  first,  to  England;  second,  to  our  own 
Commonwealth  ;  third,  to  other  States.  We  have  therefore  ob- 
served this  order  of  presentation  in  the  following  pages. 

The*  subject  was  first  investigated  by  this  Bureau  in  1876, 
and  the  results  of  that  investigation  were  presented  in  our 
Eighth  Annual  Report  (March,  1877).  The  chapter  at  that 
time  devoted  to  the  topic  consisted  mainly  of  an  exhaustive 
account  of  all  that  had  been  attempted  in  this  direction  in 
Massachusetts,  accompanied  by  a  resume  of  what  had  been 
accomplished  in  England,  prepared  for  the  Bureau  by  Alsager 
Hay  Hill,  LL.B.,  of  London.    This  resume  was  restricted  to 


6  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


the  space  at  our  command,  and  though  accurate  was  necessarily- 
brief. 

"We  now  have  at  our  disposal  a  more  complete  history  of  the 
practical  operation  of  the  system  in  England,  for  which  we  are 
indebted  to  the  comprehensive  report  of  Mr.  Joseph  D.  Weeks, 
Special  Commissioner  of  the  State  of  Pennsylvania  to  his 
Excellency  Gov.  Hartranft  (December,  1878)  ;  and  as  a  knowl- 
edge of  the  successes  and  failures  which  have  attended  the 
English  experiments  is  essential  to  a  thorough  understanding  of 
the  subject,  and  properly  precedes  a  consideration  of  what  has 
been  done  here,  we  substitute  for  the  resume  of  Mr.  Hill  the 
more  exhaustive  report  of  Mr.  Weeks,  and  present  substantially 
in  full,  as  Part  I.  of  this  pamphlet,  his  account  of  the  origin  of 
industrial  conciliation  and  arbitration  in  England,  and  of  the 
practical  workings  of  the  system  in  the  hosiery,  building,  coal, 
and  iron  industries,  with  the  author's  comments  thereon,  adding 
to  his  remarks  respecting  other  industries  some  facts  derived 
from  Mr.  Hill. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


7 


Pa  r  t  I. 


INDUSTEIAL  CONCILIATION  AND  ARBITEATION  IN  ENGLAND. 


In  transmitting  to  his  government  the  report  on  this  subject, 
which  we  now  reproduce,  the  author  makes  special  acknowl- 
edgments for  aid  given  him  in  its  preparation  to  Mr.  Rupert 
Kettle,  judge  of  the  county  courts  of  Worcestershire ;  Mr.  A. 
J.  Mundella,  M.  P. ;  Mr.  B.  Samuelson,  M.  P. ;  Mr.  Thomas 
Burt,  M.  P.,  representative  of  the  colliers ;  Mr.  Ed.  Trow,  Sec- 
retary of  the  National  Amalgamated  Iron  Workers'  Association ; 
Mr.  George  Howell,  formerly  secretary  of  the  parliamentary 
committee  of  the  Trades  Union  Congress ;  Mr.  George  Broad- 
hurst,  present  secretary  of  the  same ;  Mr.  Alsager  Hay  Hill, 
editor  of  "  The  Labour  News;  "  Mr.  W.  H.  S.  Aubery,  editor  of 
Capital  and  Labour ; "  and  especially  to  Mr.  Charles  Wheeler, 
of  Wolverhampton. 

He  also  says,  — 

'•I  found,  at  the  beginning  of  my  inquiries,  that  though  there 
were  at  least  three  laws  on  the  statute  books  of  England  on 
this  subject,  they  were  virtually  dead  letters,  and  therefore  I 
directed  my  attention  to  the  workings  of  the  voluntary  Boards 
of  Arbitration  and  Conciliation  that  exist  in  a  number  of  the 
trades  of  that  country ;  and  have  given,  in  this  report,  some 
account  of  their  operations,  with  copies  of  the  rules  of  the 
most  important.  These  rules  will  be  found  in  appendices  to  the 
report,  together  with  the  latest  act  of  Parliament  on  the  subject 
of  arbitration. 

"  The  condition  of  the  laboring  class,  and  the  strength  and 
extent  of  the  labor  organizations,  were  subjects  to  which  I  was 
forced  to  devote  considerable  attention,  in  order  to  correctly 
understand  and  appreciate  the  workings  of  arbitration ;  but  I 
have  touched  upon  these  subjects  incidentally,  and  only  so  far 
as  was  necessary  to  an  understanding  of  the  difficulties  to  be 
overcome." 


8  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 

The  report  then  continues  as  follows  :  — 
SECTION  I. 

PRELIMINARY.     CONSEILS  DES  PRUD'HOMMES. 

ARBITRATION  IN  ENGLAND  PRIOR  TO  1860. 

Industrial  arbitration  and  conciliation  had  their  origin  in 
France  early  in  the  present  century.  The  system  established 
was  the  outgrowth  of  the  trade  guilds  which  had  existed  in 
that  country,  and  regulated  trade  matters,  in  some  cases  from 
the  Middle  Ages.  These  were  abolished  during  the  last  days 
of  the  monarchy  of  Louis  XVI.,  a  time  when  the  constitution 
of  industrial  as  well  as  political  society  was  being  overturned. 
After  a  few  years  of  imperfect  legislation,  in  1806,  at  the 
request  of  the  workingmen  of  Lyons  and  by  command  of  the 
First  Napoleon,  courts  of  arbitration  and  conciliation  were  es- 
tablished by  law.  These,  with  some  slight  modification,  have 
continued  until  the  present  under  the  title  of  "  Conseils  des 
Prud'hommes."  These  councils  are  judicial  tribunals,  consti- 
tuted under  authority  of  the  Minister  of  Commerce,  through 
the  Chambers  of  Commerce,  which  are  established  at  important 
trade  centres  of  that  country.  They  are  composed  of  an  equal 
number  of  employer  and  workingmen  members,  each  class  elect- 
ing its  own  representatives,  with  a  president  and  vice-president 
named  by  the  Government.  The  authority  of  these  councils 
extends  to  every  conceivable  question  that  can  arise  in  the 
workshop,  not  only  between  the  workman  and  his  employer, 
but  between  the  workman  and  his  apprentice  or  his  foreman. 
There  is  but  one  question  they  cannot  settle  —  future  rates  of 
wages ;  but  even  this  can  be  done  by  mutual  agreement.  Arbi- 
tration is  compulsory  upon  the  application  of  either,  and  the 
decisions  of  the  court  can  be  enforced  the  same  as  those  of  any 
other  court  of  law. 

The  workings  of  these  courts  have  been  beneficial  to  French 
industry,  especially  in  conciliation,  by  which  more  than  ninety 
per  cent  of  all  cases  brought  before  the  tribunals  are  settled. 
In  1847,  the  sixty-nine  councils  then  in  existence  had  before 
them  19,271  cases,  of  which  17,951  were  settled  by  conciliation 
in  the  private  bureau,  519  more  by  open  conciliation,  and  in  only 
529  cases  was  it  necessary  to  have  formal  judgment.    In  1850, 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  9 


of  28,000  cases,  26,800  were  settled  by  conciliation.  There 
were,  at  tlie  close  of  1874,  112  councils  in  France.  This  is  a 
most  satisfactory  showing ;  but  it  falls  far  short  of  expressing 
the  great  benefit  these  councils  have  been  to  French  industry, 
especially  in  removing  causes  of  differences  or  in  preventing 
them  from  growing  into  disputes.  Their  success  is  sufficient 
justification  of  the  praise  so  lavishly  bestowed  upon  them  by 
M.  Chevalier,  "  Une  des  plus  nobles  creations  dont  notre  siecle 
Vhonore.^^ 

Tribunals  similar  to  the  Conseils  des  Priid'hommes^  of  France, 
are  in  existence  in  Belgium.  Their  success,  however,  has  not 
been  as  marked  as  in  France,  owing  in  part,  no  doubt,  to  the 
fact  that  they  have  in  some  cases  criminal  jurisdiction. 

In  Great  Britain,  though  a  law  somewhat  similar  in  its  char- 
acter to  that  of  France,  and  evidently  framed  from  it,  has  been 
on  the  statute  books  since  the  fifth  year  of  the  reign  of  George 
IV.  (1824),  so  little  use  has  been  made  of  its  provisions  that  its 
existence  was  practically  forgotten.  England  did  not  possess 
the  organizations  necessary  to  its  successful  workings,  and  the 
compulsory  features  seem  especially  obnoxious  to  both  employer 
and  employed.  As  Mr.  Rupert  Kettle,  to  whom  the  cause  of 
industrial  arbitration  owes  such  a  heavy  debt,  says,  "  It  is 
agreed  that,  according  to  the  spirit  of  our  laws  and  the  freedom 
of  our  people,  any  procedure,  to  be  popular,  must  be  accepted 
voluntarily  by  both  contending  parties."^  The  history  of  arbi- 
tration and  conciliation  in  Great  Britain  fully  justifies  this 
remark. 

Previous  to  1860,  a  year  which  marks  an  epoch  in  the  his- 
tory of  industrial  arbitration  in  England,  it  had  frequently  been 
applied  to  the  settlement  of  industrial  disputes.  Legal  sanc- 
tions, however,  were  never  sought  for  the  awards.  They  were 
loyally  accepted  without  any  constraint,  except  a  man's  sense 
of  honor,  and  a  certain  esprit  du  corps,  both  among  the  em- 
ployers and  employed.  These  arbitrations  were  not  only 
frequent,  but  in  some  trades  were  systematically  used  in  every 
dispute  which  arose.  The  pottery  trade  furnishes  a  very  good 
example  of  continuous  and  successful  arbitration.  In  this  in- 
dustry, —  one  of  the  most  difficult  in  which  to  harmonize  the 
conflicting  views  of  capital  and  labor,  by  reason  of  the  large 
number  of  trades  into  which  labor  is  divided,  and  the  peculiar 

1  Strikes  and  Arbitrations,  p,  26.    London,  1866. 
2 


< 


10  INDUSTRIAL  COXCLLIATION  AND  ARBITRATION. 

customs  that  have  come  to  be  regarded  as  rights,  —  in  this  trade 
there  has  not  been  a  general  strike  since  1836  ;  and  the  reason 
given  is  that  disputes  have  been  invariably  settled  by  arbitra- 
tion. The  yearly  "  contracts  for  hiring  "  contained  the  follow- 
ing clause :  If  any  dispute  arise  between  the  parties  as  to  the 
prices  or  wages  to  be  paid,  by  virtue  of  such  an  agreement,  the 
dispute  shall  be  referred  to  an  arbitration  board  of  six  persons, 
to  consist  of  three  manufacturers,  chosen  by  the  masters,  and 
three  working  potters,  elected  by  the  workingmen."  This  clause 
does  not  provide  for  a  board  to  settle  future  rates  of  wages ; 
but  both  sides  have  formed  what  may  be  called  the  habit  of 
arbitrating,  and  they  have  appealed  to  this  principle  in  trouble. 
As  a  result,  for  over  thirty  years  this  clause  has  prevented 
strikes  in  this  trade. 

It  is  not  necessary  to  extend  this  report  by  giving  other 
examples,  showing  the  history  and  success  of  arbitration  prior 
to  1860.  It  was  often  appealed  to  in  many  trades,  though  in 
none  does  it  appear  to  have  worked  as  well,  or  to  have  been 
tried  so  continuously,  as  in  the  pottery  trade.  There  had,  as  the 
result  of  these  trials,  grown  up,  especially  among  the  work- 
people, a  decided  feeling  in  favor  of  industrial  arbitration,  and  a 
willingness  to  give  it  a  trial,  which,  doubtless,  rendered  the 
attempts  to  establish  it  as  a  principle  much  surer  of  success. 

SECTION  II. 

THE   ESTABLISHMENT    OF    VOLUNTARY   PERMANENT  BOARDS 
OF  ARBITRATION  AND  CONCILIATION  IN  ENGLAND. 

DIFFERENCE  BETWEEX  ARBITRATION  Am)  COXCILIATIOX. 

As  alread}^  stated,  the  year  1860  marked  an  epoch  in  the  his- 
tory of  arbitration  and  conciliation  in  Great  Britain,  and  gave 
it  a  new  character,  one  more  in  accordance  with  the  tone  of 
modern  thought  and  the  changed  relations  of  capital  and  labor. 

Late  in  that  year,  mainly  through  the  efforts  of  Mr.  A.  J. 
Mundella,  the  first  permanent  or  continuous  board  of  arbitra- 
tion and  conciliation  in  England  was  established,  in  the  hosiery 
and  glove  trade,  at  Nottingham.  Mr.  Henry  Crompton,  in  his 
admirable  little  work  on  "  Industrial  Conciliation,"  in  speaking 
of  the  establishment  of  this  board  says,^  "Mr.  Mundella  must 

1  Page  33. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  11 

be  regarded  as  the  inventor  of  systematic  industrial  concilia- 
tion." In  view  of  the  fact  stated  in  the  previous  section,  that 
the  large  majority  of  cases  brought  before  the  Conseils  des  Prud'- 
hommes  were  settled  by  conciliation  in  the  private  bureau,  this 
claim  can  hardly  be  made  for  Mr.  Mundella.  The  distinguish- 
ing feature  of  the  board  organized  by  his  efforts,  and  at  the 
same  time  the  marked  characteristic  of  arbitration  since  1860, 
is  that  it  is  systematic  conciliation  or  arbitration  organized  on  a 
purely  voluntary  basis,  without  an  appeal  to  legal  processes,  even 
to  enforce  its  decisions.  That  is,  its  novelty  is  not  that  it  is 
systematic  —  the  French  Conseils  were  that  —  but  that  it  is 
both  systematic  and  voluntary,  and  these  the  French  prototypes 
were  not. 

The  voluntary  feature  of  these  boards  is  one  to  which  I  desire 
to  call  particular  attention.  Both  Mr.  Mundella  and  Mr.  Kettle, 
to  whom  the  cause  of  arbitration  and  conciliation  in  England 
owes  much  that  it  is,  and  who  represent  somewhat  diverse  views 
on  the  subject,  agree  that  these  boards  should  be  voluntary, 
and  not  compulsory.  Though  there  are  acts  of  Parliament 
•which  provide  compulsory  legal  powers,  by  which  either  side 
can  compel  the  other  to  arbitrate  on  any  dispute,  these  powers 
have  never,  in  a  single  instance,  so  far  as  I  could  learn,  been 
used  ;  but  the  large  number  of  differences  that  have  been  settled 
by  arbitration  in  Great  Britain  in  the  last  eighteen  years  have 
all  been  voluntary  in  their  submission,  and  in  the  enforcement 
of  the  award.  Mr.  Kettle  would  provide,  that,  in  certain  cases, 
the  awards  should  become  part  of  the  contract  between  the  em- 
ployer and  the  employed,  to  be  enforced  at  law  as  any  other 
contract ;  but,  as  these  contracts  can  be  terminated  by  a  short 
time-notice,  it  does  not  take  away  from  the  voluntary  nature  of 
the  arbitrations  under  what  is  known  as  the  Wolverhampton 
system.  How  this  voluntary  feature  has  worked  in  practice, 
will  be  evident  in  the  course  of  this  report. 

In  discussing  this  subject,  it  is  very  important  at  the  outset 
to  distinguish  between  arbitration  and  conciliation.  Though 
the  former  is  a  generic  word,  and  the  one  more  commonly  used 
in  referring  to  the  system,  there  is  an  essential  and  important 
difference  between  arbitration  and  conciliation.  Unless  this 
is  clearly  impressed  on  the  mind,  and  the  scope  and  working  of 
each  clearly  understood,  it  will  be  impossible  to  learn  the  secret 
of  the  success  that  has  attended  these  boards,  and  the  reason  of 


12  INDUSTRIAL  CONCILIATIOK  AND  AEBITEATION. 


their  continued  existence.  Arbitration  deals  with  the  larger 
questions  of  trade,  conciliation  with  the  smaller;  arbitration^ 
with  the  whole  trade,  conciliation  oftener  with  the  individuals. 
Conciliation  is  not  formal :  it  does  not  attempt  to  sit  in  judg- 
ment, and  decide  in  a  given  case  what  is  right  and  what  is  wrong  ; 
but  its  efforts  are,  in  a  friendly  spirit,  to  adjust  differences  by- 
inducing  the  parties  to  agree  themselves.  It  removes  causes  of 
dissensions,  and  prevents  differences  from  becoming  disputes,  by 
establishing  a  cordial  feeling  between  those  who  may  be  parties 
to  the  same.  Conciliation,  in  a  word,  may  be  defined  as  informal 
arbitration.  Arbitration,  on  the  other  hand,  is  formal.  It  sits 
in  judgment.  It  implies  that  matters  in  dispute  by  mutual  con- 
sent or  by  previous  contract  have  been  submitted  to  arbiters, 
and  an  umpire,  whose  decision  is  final  and  binding  on  both 
parties.  Mr.  Crompton,  in  his  work  on  "  Industrial  Concilia- 
tion," says  ^  when  contrasting  arbitration  and  conciliation,  "  con- 
ciliation aims  at  something  higher,  —  at  doing  before  the  fact 
that  which  arbitration  accomplishes  after.  It  seeks  to  prevent 
and  remove  the  causes  of  dispute  before  they  arise,  to  adjust 
differences  and  claims  before  they  become  disputes.  A  board 
of  conciliation  deals  with  matters  that  could  not  be  arbitrated 
upon,  promoting  the  growth  of  beneficial  customs,  interfering 
in  the  smaller  details  of  industrial  life,  modifying  or  removing 
some  of  the  worst  evils  incidental  to  modern  industry,  such,  for 
example,  as  the  truck  system,  or  the  wrongs  which  workmen 
suffer  at  the  hands  of  middlemen  and  overseers." 

It  is  this  preventive  feature  that  gives  conciliation  a  value 
beyond  estimation.  It  is  a  most  admirable  and  praise w^orthy 
object,  to  provide  means  for  settling  disputes  when  they  have 
arisen.  It  is  much  more  desirable  to  prevent  them  from  aris- 
ing ;  and  the  tendency  of  conciliation  is  to  do  this,  by  removing 
the  old  feelings  of  bitterness,  by  inspiring  respect  for  each 
other,  and  fostering,  at  the  same  time,  a  spirit  of  indepen- 
dence, and  compelling  a  recognition  of  the  dignity  and  worth  of 
labor  and  the  necessity  and  beneficence  of  capital. 

And  yet,  after  all  that  may  be  said  in  praise  of  conciliation, 
it  is  conceded,  even  by  its  warmest  advocates,  that  back  of  all 
conciliation  there  must  be  arbitration.  The  time  may  come, 
and,  in  the  settlement  of  certain  questions,  generally  will  come, 
when  no  friendly  offices  are  sufiQcent  to  enable  capital  and  labor 

1  Page  17. 


INDUSTKIAL  CONCILIATION  AND  AEBITRATION.  13 

to  see  alike.  Self  interest  renders  it  impossible  for  either  to 
decide  fairly,  and  something  more  than  a  master  of  ceremonies 
or  a  conciliator  is  needed.  There  must  be  power  to  determine 
as  well  as  hear.  That  is,  arbitration  must  intervene,  and  its 
decisions  accomplish  what  conciliation  is  powerless  to  bring 
about. 

To  show  the  workings  of  arbitration  and  conciliation,  I  have 
given  in  the  following  pages  a  detailed  account  of  the  organ- 
ization and  operation  of  several  of  the  most  prominent  boards. 
The  records  are  mainly  those  of  arbitration,  not  of  conciliation, 
as  in  war  it  is  the  battles  that  are  recorded,  not  the  skirmishes 
and  movements  for  position. 

SECTION  III. 

THE  NOTTINGHAM  SYSTEM  OF  ARBITRATION  AND  CONCILIATION. 

The  so-called  Nottingham  system  of  arbitration  or  concilia- 
tion owes  its  establishment  to  Mr.  A.  J.  Mundella,  at  present 
one  of  the  members  for  Sheffield  of  the  House  of  Commons. 
Mr.  Mundella  has  been  most  earnest  and  untiring  in  his  efforts 
to  make  arbitration  the  prevailing  and  recognized  method  of 
settling  all  disputes  that  may  arise  between  labor  and  capital ; 
and  it  is  not  too  much  to  sa}^  that  to  his  intelligent  efforts 
much  of  the  success  that  has  attended  conciliation  is  due. 

The  hosiery  and  glove  trade,  with  which  Mr.  Mundella  is 
connected,  is  one  of  the  most  localized  in  Great  Britain,  being 
carried  on  only  in  the  immediate  vicinity  of  Nottingham,  in 
Nottinghamshire,  Derbyshire,  and  Leicestershire.  I  need  not 
point  out  that  such  a  concentration  of  one  class  of  skilled  labor 
led  to  union,  and  a  consequent  power  not  always  judiciously 
used.  According  to  all  accounts,  the  relations  between  em- 
ployers and  employed  in  these  trades,  prior  t§  1860,  were  as 
ugly  as  could  well  be  imagined.  From  1710  to  1820,  there  is 
a  frightful  list  of  murders,  riots,  arsons,  and  machine-breaking 
recorded,  all  arising  out  of  industrial  differences.  An  act  was 
passed  by  Parliament,  early  in  the  century,  punishing  machine- 
breaking  with  death ;  and  in  1816  six  persons  suffered  this 
penalty.  In  the  remaining  forty  years  of  the  century  and  a  half 
from  1710,  while  the  worst  features  of  this  industrial  strife 
nearly  or  quite  disappeared,  the  relations  were  in  no  wise  im- 


14 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


proved,  though  the  strife  assumed  a  different  form.  Suspicion, 
distrust,  hatred,  were  the  sentiments  cherished  towards  the 
manufacturers  by  the  workmen ;  and  arrogance,  oppression, 
and  an  equally  strong  hatred  were  returned.  War,  or  at  least 
an  illy-kept  armistice,  was  the  condition  of  the  hostile  camps. 
Strikes  and  lock-outs  were  constantly  occurring,  and  no  judi- 
cious, honest  effort  was  made  to  end  them.  In  1860,  there 
were  three  strikes  in  one  of  the  three  branches  into  which  the 
hosiery  trade  is  divided,  one  lasting  eleven  weeks.  It  was  dur- 
ing this  strike  that  the  Board  of  Arbitration  and  Conciliation 
was  formed.  Though  the  strike  was  confined  to  one  branch,  it 
was  soon  discovered  that  it  was  supported  by  the  Avorkingmen 
in  the  other  branches,  and,  in  what  they  considered  self-defence, 
it  was  proposed  by  the  manufacturers  to  lock  out  the  entire 
body  of  workingmen  in  all  branches.  Some  of  the  manufac- 
turers, Mr.  Mundella  among  them,  shrank  from  the  misery  and 
suffering,  and  perhaps  crime,  that  would  be  the  esult.  "Some 
of  us  thought,"  says  Mr.  Mundella,  ^  "  that  we  might  devise 
some  better  means  of  settling  the  thing.  I  had  heard  of  the 
Conseils  des  Prucfhommes  in  France  ;  and  with  one  or  two  oth- 
ers I  built  up  a  scheme  in  my  imagination  of  what  I  thought 
might  be  done  to  get  a  good  understanding  with  our  men,  and 
regulate  wages." 

At  a  meeting  of  the  manufacturers,  a  committee  of  three  was 
appointed  to  invite  the  workmen  to  a  conference,  which  they 
accepted.  We  three,"  to  quote  Mr.  Mundella  again,^  "  met 
perhaps  a  dozen  leaders  of  the  trades  union ;  and  we  consulted 
with  these  men,  told  them  that  the  present  plan  was  a  bad  one, 
that  it  seemed  to  us  that  they  took  every  advantage  of  us  when 
we  had  a  demand,  and  we  took  every  advantage  of  them  when 
trade  was  bad,  and  it  was  a  system  mutually  predatory.  And 
there  is  no  doubt  that  it  was  so  :  we  pressed  down  the  price  as 
low  as  we  coultl,  and  they  pressed  up  the  price  as  high  as  they 
could.  This  often  caused  a  strike  in  pressing  it  down,  and  a 
strike  in  getting  it  up ;  and  these  strike  were  most  ruinous 
and  injurious  to  all  parties,  because,  when  we  might  have  been 
supplying  our  customers,  our  machinery  was  idle ;  and  we  sug- 
gested whether  we  could  not  try  some  better  scheme.  Well, 
the  men  were  very  suspicious  at  first ;  indeed,  it  is  impossible 
to  describe  to  you  how  suspiciously  we  looked  at  each  other. 

1  Trades  Union's  Commission,  1867.    Tenth  report,  p.  74. 


t 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


15 


Some  of  the  manufacturers  also  deprecated  our  proceedings, 
and  said  that  we  were  degrading  them,  and  humiliating  them, 
and  so  on.  However,  we  had  some  ideas  of  our  own,  and  we 
went  on  with  them ;  and  we  sketched  out  what  we  called  a 
Board  of  Arbitration  and  Conciliation." 

The  result  of  this  action  was  the  formation  of  "  The  Board 
of  Arbitration  and  Conciliation  in  the  Glove  and  Hosiery 
Trade,"  the  first  permanent  board  established.  The  rules 
adopted  were  very  simple,^  and  have  worked  so  well  in  most 
particulars,  that  they  have  hardly  been  amended  since  the  day 
they  were  made.  The  object  of  the  board  is  declared  to  be  to 
arbitrate  on  any  question  of  wages  that  may  be  referred  to  it, 
and  to  endeavor,  by  conciliatory  means,  to  put  an  end  to  any 
disputes  that  may  arise.  The  board  consists  of  twenty-two 
members,  half  operatives  and  half  manufacturers,  elected  for 
one  year,  each  class  electing  its  own  representatives.  The 
delegates  have  full  powers,  and  the  decisions  of  the  board 
are  considered  binding  upon  all.  There  is  provision  for  a  com- 
mittee of  inquiry,  to  whom  all  differences  must  be  referred 
before  the  board  will  act  upon  them.  This  committee  has 
no  power  to  make  an  award,  acting  only  as  conciliators.  A 
month's  notice  is  to  be  given  to  the  secretaries,  before  any 
change  in  the  rate  of  wages  will  be  considered.  Regular  meet- 
ings are  held  quarterly.  The  chairman,  in  the  original  consti- 
tution of  the  board,  had  a  vote,  and  a  casting  vote  as  well,  in 
case  of  a  tie.  This  was  one  of  the  weak  points  in  the  organ- 
ization, and,  as  the  chairman  was  an  employer,  trouble  resulted. 
Mr.  Mundella,  who  was  the  first  chairman  of  the  board,  speak- 
ing of  this  says :  "  I  have  a  casting  vote,  and  twice  that  casting 
vote  has  got  us  into  trouble.  And  for  the  last  four  years  it  has 
been  resolved  that  we  would  not  vote  at  all.  Even  when  a 
workingman  was  convinced,  or  a  master  convinced,  he  did  not 
like  acting  against  his  own  order,  and  in  some  instances  we 
had  secessions  in  consequence  of  that :  so  we  said,  '  Do  not  let 
us  vote  again,  let  us  try  if  we  can  agree,'  and  we  did  agree." 

In  the  Wolverhampton  system  this  error  was  avoided.  An 
independent  umpire  or  referee  was  elected  by  the  board,  whose 
decision  was  final  and  binding  in  case  of  an  equal  vote  by  the 
board.  The  Nottingham  board  has  also  changed  its  rule,  and 
the  chairman  no  longer  gives  a  casting  vote,  a  referee  appointed 

1  A  copy  of  the  rules  will  be  found  in  Appendix  A, 


16  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 

for  the  occasion  being  called  in,  in  case  of  a  failure  to  agree.  I 
cannot  but  regard  the  Wolverhampton  system  of  a  referee 
elected  previous  to  a  "  dead-lock,"  as  much  the  better  plan. 
This  is  the  course  adopted  in  the  lace  trade  of  Nottingham. 

The  proceedings  under  these  rules  are  very  simple.  When 
any  difference  arises  between  employers  and  employed,  the 
secretaries  endeavor  to  arrange  it.  In  the  event  of  their  failure, 
it  is  brought  before  the  committee  of  inquiry,  who  try  to  settle 
it ;  and,  it  being  unable,  it  is  then  brought  before  the  board. 
One  of  the  invariable  conditions  of  any  arbitration  is  that  work 
shall  be  continued  pending  the  trial  of  the  case ;  that  is,  that 
there  shall  be  neither  strike  or  lock-out.  The  proceedings 
before  the  board  are  very  informal.  The  members  sit  around 
a  table,  workingmen  and  employers  interspersed.  The  discus- 
sion is  without  ceremony,  and  the  difference  is  settled  by 
endeavoring  to  arrive  at  the  best  arrangement  possible  under 
the  circumstances. 

The  most  serious  questions  brought  before  this  board  are 
those  of  wages,  which,  considering  the  nature  of  the  trade,  are 
very  difficult  of  adjustment.  On  this  point,  and  of  the  success 
that  has  attended  its  efforts  to  adjust  wages,  Mr.  Mundella  said 
in  a  speech  at  Bradford:  "The  articles  manufactured  in  the 
hosiery  trade  are  exceedingly  numerous  and  varied  in  character. 
All  work  is  paid  for  by  the  piece,  at  the  rate  of  so  much  per 
dozen.  From  time  immemorial  these  rates  have  been  fixed  by 
printed  statements,  and  the  battles  formerly  fought  were  as  to 
whether  masters  or  workmen  should  make  these  statements. 
Since  the  foundation  of  the  board,  all  variations  in  prices,  up 
or  down,  have  been  referred  to  it,  and  no  statement  is  con- 
sidered legitimate  without  the  signatures  of  its  members. 

"  It  is  very  rarely  that  the  price  originally  proposed  by  either 
masters  or  workmen  is  the  price  ultimately  agreed  to.  Some 
alterations  or  concessions  are  generally  made  on  both  sides,  and 
the  price,  once  fixed,  is  considered  mutually  binding.  In  times 
of  depression,  when  foreign  competition  has  interfered  with 
any  branch,  a  fair  reduction  has  been  generally  submitted  to ; 
and  in  times  of  prosperity,  when  advances  could  fairly  be  given, 
they  have  been  invariably  conceded  ;  but,  in  order  that  the  trade 
may  not  be  taken  by  surprise,  that  manufacturers  may  finish 
their  contracts  in  times  of  advance,  and  that  no  hasty  decisions 
may  be  made  against  either  party,  we  have  a  resolution  on  our 


INDUSTRIAL  CONCILIATION  AND  ABBITRATION.  17 

minute-book,  that  a  month's  notice  shall  be  given  before  any 
change  of  prices  can  be  discussed.  Owing  to  the  variable 
character  of  the  trade,  small  differences  and  disputes  are  con- 
stantly arising.  Some  extra  work  may  be  required  in  an  article 
for  which  the  workman  may  tliink  a  shilling  would  be  proper 
compensation,  while  the  manufacturer  may  think  sixpence  is 
sufficient. 

"If  the  workmen  of  any  branch  conceive  that  they  have 
grievances  to  complain  of,  in  addition  to  the  ordinary  repre- 
sentatives of  that  branch,  a  delegation  may  attend  the  board, 
and  lay  the  case  fully  before  it.  The  first  business  at  our 
meetings  is  invariably  to  receive  delegations.  They  retire  after 
having  made  their  statements,  and  the  board  proceeds  to  delib- 
erate. We  have  never  met  without  settling  at  least  half  a 
dozen  questions,  some  important  and  some  trivial,  which,  if 
allowed  to  remain  open,  would  produce  irritation." 

The  benefits  this  board  has  conferred  on  the  hosiery  and 
glove  trades  are  incalculable.  A  most  friendly  feeling  has  taken 
the  place  of  hostility,  and  confidence  and  mutual  respect  exists 
where  formerly  all  was  suspicion  and  hatred.  This  was  not  th« 
result  of  a  day,  nor  was  it  accomplished  without  occasional  lapses 
to  the  old  state  of  things.  The  strifes  of  a  century  and  a 
half  are  not  so  soon  forgotten ;  but  troubles  in  the  board  have 
been  so  infrequent  and  unimportant,  that  I  am  justified  in  say- 
ing that  it  is  a  complete  success.  Strikes  and  lock-outs,  are 
unknown;  contact  has  developed  respect.  The  changed  rela- 
tions of  employer  and  employed  have  been  recognized:  they  have 
met  about  the  same  table  as  equals;  and  out  of  tliis  has  grown 
a  condition  of  affairs  that  will  make  it  impossible  for  the  old 
conditions  to  return. 

A  large  part  of  the  credit  of  the  success  of  this  board,  and  of 
this  change  in  the  relations  of  the  two  classes,  is  due  to  the  pro- 
vision for  regular  meetings  of  the  board.  I  do  not  hesitate  to 
say  that  this  is  the  most  valuable  feature  of  these  boards.  The 
great  curse  of  industry,  and  the  fruitful  cause  of  difficulty,  is  a 
foolish  obstinacy  and  a  false  pride.  This  arises  in  many  cases 
from  a  want  of  knowledge  and  a  lack  of  common  courtesy  in 
matters  concerning  both  capital  and  labor,  and  in  which  both 
have  an  equal  interest.  This  quarterly  coming  face  to  face,  this 
meeting  as  equals,  —  and  in  all  questions  that  can  come  before 
these  boards  they  are  equals,  and  it  is  foolish  to  ignore  this  fact, 

3 


18  INDUSTRIAL  CONCILIATION  AND  ARBITEATION. 

—  and  this  discussing  subjects  of  common  interest  as  sensible 
men,  seeking  for  the  facts,  and  inclined  to  moderation  and  con- 
cession, if  need  be,  have  had  a  marvellous  effect  in  removing  this 
pride  and  obstinacy,  and  bringing  about  that  respect  and 
courtesy  that  must  be  at  the  basis  of  all  friendly  negotiations 
between  capital  and  labor.  These  meetings  have  also  given 
the  men  a  knowledge  of  the  conditions  of  trade  and  its  necessi- 
ties, which  they  could  not  get  in  any  other  way,  and,  from  this 
knowledge,  they  have  been  led  to  moderation  in  demands  or 
willingness  to  concede  reductions  that  otherwise  they  would  not 
have  possessed.  If  the  arbitration  features  were  wholly  removed 
from  these  boards,  and  they  only  retained  this  feature  of  quar- 
terly meetings  of  recognized  representatives  of  trades  unions 
and  of  manufacturers'  associations,  their  adoption  generally  in 
this  country  would  be  productive  of  incalculable  benefit. 

SECTION  lY. 

THE   WOLVERHAMPTON  SYSTEM   OF   ARBITRATION   AND  CON- 
CILIATION. 

Some  three  years  after  the  establishment  of  the  Nottingham 
board,  a  system  of  arbitration,  differing  from  it  in  some  essen- 
tial particulars,  was  adopted  in  the  building  trades  at  Wolver- 
hampton. This  plan  was  worked  out  without  any  knowledge 
on  the  part  of  its  chief  promoter  of  what  had  been  done  at 
Nottingham.  It  avoided  some  of  the  errors  of  that  plan ;  but 
at  the  same  time  it  lacked  some  of  its  admirable  features. 

The  building  trades  are  peculiarly  liable  to  industrial  con- 
tests. These  contests  have  been  not  only  over  wages,  but  over 
certain  customs  of  the  trade,  which  have  been  regarded  as  rights 
on  the  one  side,  and  submitted  to  on  the  other  from  necessity. 
Building  is  so  much  a  matter  of  contract,  and  the  portion  of 
time  in  a  year  in  which  it  can  be  carried  on  so  circumscribed 
from  various  causes,  that  strikes  in  its  trades  are  very  frequent. 
At  Wolverhampton,  prior  to  1864,  these  strikes  were  of  common 
occurrence,  and  seriously  interfered  with  the  business  of  the 
town.  One  in  1863  lasted  seventeen  weeks,  and  left  a  feeling 
of  discontent  that  promised  trouble  at  the  opening  of  the  build- 
ing season  in  1864.  To  avert  this,  the  mayor  called  a  public 
meeting  of  the  trades  to  devise,  if  possible,  some  means  of  pre- 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  19 


ventiDg  the  strike.  A  meeting  was  accordingly  held,  at  which 
one  branch  of  the  building  trade  —  the  carpenters  and  joiners  — 
appointed  six  delegates  to  confer  with  six  delegates  of  the  em- 
ployers, and  endeavor  to  arrange  their  differences ;  the  latter 
appointing  six  delegates  on  their  part.  This  was  on  the  14th  of 
March,  1864.  On  the  21st  of  March,  the  twelve  delegates  met; 
and  they  then  saw  the  propriety  of  choosing  a  chairman,  who 
should  have  a  casting  vote,  before  they  entered  upon  any  other 
business.  This  was  done  by  each  party  using  a  list  of  six  names, 
and  means  were  taken  to  determine  by  chance  whether  the 
"  masters'  or  the  men's  "  list  should  have  priority  of  considera- 
tion. As  the  first  name  upon  both  lists  happened  to  be  the 
same,  a  chairman  was  easily  chosen.  The  chairman  thus  chosen 
was  Mr.  Rupert  Kettle,  judge  of  the  Worcestershire  county 
courts,  a  gentleman  most  admirably  fitted  for  the  responsible 
position  of  arbitrator  he  has  so  often  been  called  to  fill ;  of  clear 
insight,  a  judicial  mind  trained  by  his  long  experience  on  the 
bench,  and  a  most  happy  faculty  of  graphic  expression.  His 
awards,  to  quote  the  language  of  Mr.  Henry  Crompton,  were 
"remarkable  for  very  vigorous  analysis  and  skilful  unravelling 
of  complicated  facts."  For  ten  years  Mr.  Kettle  devoted  most 
of  his  time  to  arbitrating  industrial  disputes,  until  his  judicial 
duties  and  private  business  compelled  him  reluctantly  to  decline 
longer  to  serve  as  arbitrator. 

The  scheme  adopted  by  Mr.  Kettle  ^  was  a  simple  but  admir- 
able application  of  the  principles  of  common  law.  A  code  of 
rules  is  framed:  these  rules,  signed  by  the  arbitrators  and  um- 
pire, are  posted  in  all  the  workshops  represented  in  the  board, 
and  a  copy  given  each  workman  on  his  hiring,  he  being  informed 
that  it  is  the  contract  under  which  he  is  to  work.  If  any  ques- 
tion arises,  it  is  referred  to  the  board,  or  the  conciliation  com- 
mittee under  the  amended  rules,  and  it  is  by  them  decided.  Any 
breach  of  the  rules  is  a  breach  of  contract,  which  can  be 
punished  the  same  as  the  breach  of  any  other  contract.  It 
should  be  noted  that  this  idea  of  a  contract  enters  much  more 
largely  into  the  question  of  wages,  and  the  relations  of  employer 
and  employed,  in  England  than  with  us. 

These  rules,  as  originally  drawn,  had  no  provision  for  concilia- 
tion. All  disputes  were  to  be  referred  to  the  full  board,  and  the 
thirteen  members  brought  together  to  settle  the  most  trivial 

1 A  copy  of  the  rules  will  be  found  in  Appendix  B. 


20  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 

matters.  This  was  soon  found  too  troublesome,  and  the  concilia- 
tion rule  (Rule  No.  2)  was  adopted.  Mr.  Kettle  says  this  has 
been  "found  in  practice  more  useful  than  the  arbitration  rule.'' 

There  are  two  radical  differences  between  this  plan  and  the 
Nottingham  system.  The  latter  provides  no  method  of  enfor- 
cing the  awards  of  the  board,  while,  under  the  Wolverhampton 
system,  provision  is  made  for  their  enforcement  the  same  as  any 
other  contract.  As  to  which  system  is  the  best,  is  a  question 
much  discussed  in  England.  It  is  evident  that  no  board  can 
force  a  manufacturer  to  run  his  mill  at  a  loss ;  nor  can  he  be 
accused  of  dishonesty  or  disloyalty  if,  when  an  award  goes 
against  him,  he  closes  his  mill  or  mine,  if  it  can  only  be  operated 
at  a  loss  under  the  terms  of  the  award.  On  the  other  hand, 
there  can  be  no  power  to  compel  a  workman  to  continue  work 
unless  he  choose.  So  in  these  senses  it  is  evident  that  no  pro- 
vision can  be  made  for  enforcing  awards,  and  whether  they  shall 
be  carried  out  must  be  a  question  left  entirely  to  the  will  of  the 
parties  to  the  arbitration.  Of  course,  when  conciliation  is  used, 
there  is  no  question  ;  it  must  be  in  all  respects  voluntary. 

There  are  circumstances,  however,  in  which  the  awards  can 
and  should  be  enforced  at  law;  and,  under  a  scheme  that  con- 
templates a  code  of  working  rules  like  those  adopted  at  Wolver- 
hampton, it  is  perfectly  feasible  to  do  so.  These  rules  and  the 
penalties  attached  do  not  contemplate  that  a  workman  may  not 
be  at  liberty  to  terminate  his  contract  with  his  employer,  or 
vice  versa.  It  will  be  seen  that  this  can  be  done  on  very  short 
notice ;  but,  while  the  relations  of  employer  and  employed  con- 
tinue, they  are  on  certain  terms,  and,  when  it  is  desired  to  end 
them,  there  is  a  business-like  way  of  doing  it.  That  most  out- 
rageous custom  of  ceasing  work  in  a  pet,  at  a  moment's  notice, 
causing  the  loss  at  times  of  thousands  of  dollars'  worth  of  half- 
prepared  material,  as,  for  example,  in  the  glass  trade,  when  the 
pots  are  full  of  melted  glass,  cannot  occur  under  these  rules,  or, 
if  it  does,  there  is  a  remedy  at  law  for  breach  of  contract  and 
damages  for  loss.  Indeed,  the  business-like  methods  of  some 
of  these  rules  must  commend  them  to  the  good  common  sense 
and  judgment  of  business  men.  Mr.  Kettle  has  done  an  immense 
service  in  insisting  on  the  business  character  of  these  boards. 
As  the  system  becomes  more  perfect,  the  aim  will  be  to  reach  in 
a  business-like  way  what  is  fair  and  just  under  the  circumstances, 
and  then  to  do  it. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  21 

A  second  difference  in  the  two  systems  is  the  provision  for 
the  election  of  a  permanent  arbitrator  or  umpire.  This  is  a 
feature  which  I  regard  as  of  the  greatest  value.  Mr.  Crompton 
in  his  work,  though  strongly  favoring  conciliation,  confesses 
that  "  every  board  of  conciliation  must  have  an  ultimate  appeal 
of  some  kind."^  Mr.  Mundella  found  that  his  method  of  giving 
the  chairman  a  casting  vote  caused  trouble.  The  best  plan 
seems  to  be  the  appointment  of  a  standing  umpire  or  referee. 
Whether  he  should  attend  the  regular  meetings  of  the  board,  is 
an  open  question.  It  seems,  that,  should  he  attend,  much  time 
and  expense  would  be  saved,  and  one  of  the  objections  to  arbi- 
tration met. 

Another  of  the  rules  embodied  in  this  system  is  deserving  of 
more  than  passing  notice ;  it  is  the  third :  Neither  masters 
nor  men  shall  interfere  with  any  man  on  account  of  his  being  a 
society  or  a  non-society  man."  The  society  men  pledge  them- 
selves not  to  annoy,  nor  allow  annoyance  to,  non-society  men. 
The  system  of  arbitration  accepts  the  fact  of  combination  among 
both  employers  and  employed,  and  uses  it  as  an  agent  to  accom- 
plish the  ends  it  aims  at,  —  the  establishment  of  peace  and  good- 
will. 

To  show  the  practical  workings  of  this  board,  it  will  be  inter- 
esting to  append  Mr.  Kettle's  account  of  the  first  arbitration 
before  it. 

In  November  of  the  first  year  of  its  existence,  a  difference 
arose  between  one  of  the  master  builders  and  some  of  his  car- 
penters, as  to  the  right  construction  of  one  of  the  rules,  —  that 
which  provided  for  extra  payment  for  working  in  winter  months 
upon  unprotected  buildings. 

Upon  receiving  a  request  in  writing  from  each  party  to  settle 
this  difference  under  the  rules,  the  umpire  ascertained  what  day 
would  be  convenient  to  both  sides,  and  then  called  a  meeting  of 
the  delegates  —  who  had,  by  the  operation  of  the  individual 
contracts  of  service,  become  in  law  the  arbitrators  in  this  dis- 
pute. He  also,  through  the  secretaries  of  the  two  societies, 
caused  the  master  and  the  workmen  between  whom  the  dispute 
existed  to  attend  the  arbitration,  treating  them  as  the  parties  to 
an  ordinary  reference.  At  the  time  appointed,  the  arbitrators, 
the  umpine,  two  men  who  represented  the  workmen,  who  were 
parties  to  the  dispute,  and  the  master  from  the  works  where  the 

1  Industrial  Conciliation,  p.  24. 


22  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 

dispute  had  arisen,  met.  As  the  men  were  the  complainants, 
they  were  asked  (as  plaintiffs)  to  state  their  case.  The  master 
answered  (as  defendant),  giving  his  reading  and  view  of  the 
rule  alleged  to  have  been  broken.  The  workmen's  arbitrators 
were  then  asked  —  taking  them  in  succession  as  they  sat  at  the 
table  —  to  express  their  opinions.  The  opinions  of  the  master's 
arbitrators  was  then  taken  in  the  same  way.  It  was  a  case  of 
conflicting  arguments  upon  construction.  The  umpire  decided 
that  the  men  had  put  the  true  construction  upon  the  rule ;  and 
he  offered  to  make  an  award  which  could  be  legally  enforced ; 
but  the  master  said  he  would  willingly  abide  by  the  result,  and 
at  once  pay  the  men  accordingly.  In  this  the  men,  on  behalf  of 
themselves  and  their  fellow  shopmates,  cheerfully  acquiesced, 
and  so  we  are  deprived  of  a  precedent  from  this  case  of  the  pro- 
cedure for  enforcing  such  an  award. 

The  boards  of  arbitration  existing  in  England  embody  the 
best  characteristics  of  both  of  these  systems.  While  they  differ 
in  detail,  their  main  features  are  the  same.  They  are  all  volun- 
tary. They  are  composed  of  an  equal  number  of  employers  and 
employed,  each  class  electing  its  own  representatives.  There  is 
in  all  of  the  boards  a  provision  for  conciliation  without  con- 
yening  the  entire  membership.  Regular  meetings  of  the  board 
,^re  provided  for,  whether  there  is  any  business  to  be  transacted 
or  not.  And  in  some  form  or  other  there  is  a  power  to  which 
either  party  can  appeal  without  pride  or  shame,  that  has  power 
ito  determine  as  well  as  to  hear,  and  whose  decisions  are  received 
without  exultation  or  humiliation.  That  is  an  umpire.  The 
practical  workings  of  some  of  the  boards  will  be  given  in  suc- 
ceding  chapters. 

Sj:CTION  V. 

ARBITRATION  AND  CONCILIATION  IN  THE  MANUFACTURED 
IRON  TRADE. 

It  is  important  to  the  purposes  of  this  report  to  show  the 
practical  workings  of  arbitration  and  conciliation  in  some  indus- 
tries in  which  our  State  has  a  special  interest.  In  two  industries 
Pennsjdvania  stands  pre-eminent  among  the  States,  viz.,  those 
connected  with  the  manufacture  of  iron  and  the  mining  of  coal. 
It  is  also  in  these  that  labor  troubles  are  most  frequent,  and  the 
contests  the  most  severe.    If  arbitration  has  been  successful  in 


INDUSTRIAL  CONCILIATION  AND  AKBITRATION.  23 


averting  or  mitigating  industrial  strife  in  these  trades  in  Eng- 
land, this  fact  should  be  a  consideration  of  no  small  weight  in 
favor  of  its  trial  here.  In  view  of  the  circumstances,  in  none  of 
the  trades  of  England  has  arbitration  and  conciliation  had  a 
greater  success  than  in  these.  This  is  especially  true  of  the 
manufactural  iron  trades  of  England.  The  wages  of  all  classes 
of  labor  in  the  English  rolling  mills  are  settled,  and  have  been 
for  nearly  ten  years,  by  arbitration.  An  award  has  just  been 
given  in  South  Staffordshire,  reducing  the  price  of  puddling, 
and  other  wages ;  and  the  North  of  England  arbitration  board 
has  decided  on  a  corresponding  decline. 

Some  account  of  the  establishment  and  practical  workings  of 
the  Board  of  Arbitration  and  Conciliation  in  the  North  of  Eng- 
land iron  trade  cannot  fail  to  be  interesting,  as  no  severer  test 
of  the  value  of  arbitration  and  conciliation  can  be  found  than 
in  the  circumstances  accompanying  its  workings  in  this  trade. 
This  trade,  including  that  of  the  Cleveland  district,  began  to 
assume  importance  as  recently  as  in  1860.  For  ten  years  its 
growth  was  marvellous,  and  at  the  end  of  this  time  it  rivalled 
many  and  surpassed  most  of  the  older  centres  of  English  iron 
manufacture.  This  wonderful  growth,  at  a  time  when  other 
districts  were  increasing,  created  a  demand  for  labor  that  could 
not  be  met  from  the  ranks  of  those  already  skilled  in  the  vari- 
ous processes  of  iron  manufacture,  and  workmen  were  drawn 
from  all  classes  and  grades  of  laborers.  The  result  was  a  most 
heterogeneous  collection  of  workmen.  There  were  no  ties  of 
friendship  or  locality.  There  were  none  of  those  attachments 
that  long  companionship  causes  men  to  form  among  themselves 
and  for  their  employers,  and  even  for  the  very  tools  with  which 
they  work.  Earning  higher  wages  than  those  to  which  they 
had  been  accustomed,  unable  to  appreciate  the  difficulties  inci- 
dental to  a  trade  so  liable  as  the  iron  trade  to  great  and  sudden 
vicissitudes."  ^  The  result  of  this  state  of  affairs  can  be  easily 
imagined.  It  was  endless  disputes;  strikes  were  of  frequent 
occurrence.  In  1865-66,  there  was  both  a  lock-out  and  a  strike, 
the  latter  lasting  four  months;  and  in  the  end  nothing  was 
settled,  except  that  capital  could  hold  out  longer  than  labor. 

Between  that  time  and  the  winter  of  1868-69,  repeated  reduc- 
tions in  wages  became  necessary,  and  gave  rise  to  feelings  of 

1  From  a  paper  read  by  Mr.  B.  Samuelson,  M.P.,  before  the  British  Iron  Trade 
Association,  Feb.  24,  1876,  p.  4. 


24  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


resentment,  which  rendered  it  more  than  probable  that  any  con- 
siderable increase  in  the  demand  for  iron  would  be  the  signal  for 
peremptory  demands  on  the  part  of  the  workman."  ^  Trade 
began  to  improve  in  1869,  and  the  demand  came.  To  avert 
the  trouble,  arbitration  was  suggested ;  and  on  March  22,  1869, 
the  board  was  formed,  and  has  continued  in  successful  operation 
until  the  present  time,  and,  for  these  ten  years,  has  settled  the 
wages  and  other  industrial  questions  in  this  trade. 

2  This  board  consists  of  two  representatives  from  each  works 
joining  it,  one  chosen  by  the  owners  of  each  works  joining  the 
board,  the  other  by  the  operatives.  It  chooses  from  among  its 
members,  a  standing  committee,  to  whom  all  differences  are  in 
the  first  instance  referred,  and  whose  recommendations  in  minor 
matters  are  generally  accepted.  This  committee,  however,  has 
no  power  to  make  an  award  except  by  mutual  agreement  of  the 
parties  to  the  dispute.  All  questions  not  settled  by  it  are 
brought  before  the  board  as  soon  as  possible.  In  cases  of  re- 
adjustment of  wages  over  the  whole  district,  on  one  occasion 
two  arbitrators  had  been  chosen,  who  intervened  between  the 
board  and  the  independent  umpire.  The  committee  meets  when 
there  is  any  business;  the  board,  twice  a  year,  or  oftener  if 
necessary.  The  expenses  are  paid  equally  by  emploj^ers  and 
employed.  At  the  close  of  1875,  it  represented  thirtj^-five 
works,  and  13,000  subscribed  operatives.  These  works  had  1,913 
puddling-furnaces,  —  more  than  all  Pennsylvania,  and  half  as 
many  as  the  entire  United  States.  During  the  year  1875,  the 
standing  committee  investigated  forty  disputes.  Since  its  or- 
ganization there  have  been  eight  or  nine  arbitrations  on  the 
general  questions  of  wages,  and  scores  of  references  in  regard 
to  special  adjustment  of  wages  at  particular  works. 

Since  1874  this  board,  and  the  adherence  of  the  workmen  to 
its  decisions,  have  been  put  to  a  severe  test ;  and,  to  their  credit, 
it  should  be  said  that,  with  a  few  unimportant  local  exceptions, 
they  have  been  loyal  to  the  rules  of  the  board.  It  is  a  well- 
known  fact  that  strikes  and  lock-outs  generally  occur  on  a 
declining  wages  market;  and  the  real  test  of  the  value  of  any 
method  of  settling  wages  is  not  on  an  advancing  market,  but  a 
falling  one.  The  first  action  of  this  board  was,  under  the  um- 
pireship  of  Mr.  Rupert  Kettle,  to  decree  an  advance  of  Qd, 

1  Mr.  Samuelson's  paper,  pp.  5,  6. 

2  A  copy  of  the  rules  will  be  found  in  Appendix  C. 


INDUSTRIAL  CONCILIATION  AND  AEBITRATION.  25 

From  its  formation  in  1869  to  1874,  wages  were  advanced  from 
8s.  per  ton,  for  puddling,  to  13s.  M.  In  1874  the  turn  came ; 
9c?.  were  first  taken  off.  In  the  middle  of  the  year  M.  added, 
and  from  that  time  there  has  been  a  constant  decline  in  wages 
until  now  puddling  is  only  7s.  per  ton  of  2,400  pounds.  That 
is  wages  have  been  reduced,  under  the  action  of  this  board, 
without  any  serious  difficulty,  472  per  cent. 

Does  any  one  believe  that  this  could  have  been  peacefully 
accomplished  without  arbitration  ? 

The  success  of  arbitration  in  the  South  Staffordshire  iron 
trade  has  not  been  as  marked,  nor  have  its  operations  been  as 
continuous,  as  in  the  North  of  England.  The  board  was  origin- 
ally formed  by  the  two  iron  associations  in  the  district,  repre- 
senting employers  and  employed ;  viz.,  the  South  Staffordshire 
Ironmasters'  Association  and  the  Local  Branch  of  the  Iron 
Workers'  Union.  The  board  represented  only  these  associa- 
tions, no  attempt  being  made  to  give  a  representation,  or  to 
allow  a  vote  in  selecting  representatives,  to  those  who  were 
outsiders  and  non-unionists.  This  course  —  unlike  that  of  the 
North  of  England,  where  the  operative  members  are  elected  by 
the  vote  of  all  the  employes  of  the  works,  unionists  and  non- 
unionists —  was  the  cause  of  the  failure  of  the  first  board.  "It 
was  quite  powerless  to  bind  those  men  who  were  not  in  the  Iron 
Workers'  Union,  even  though  the  master  himself  was  bound." 

Out  of  this  failure  has  grown  an  organization  known  as  The 
South  Staffordshire  Iron  Trade  Conciliation  Board,  now  ^  some 
three  years  old.  Profiting  by  the  former  experience,  it  has 
avoided  some  of  the  errors  of  the  old  board,  while  retaining  its 
valuable  features  Its  rules  and  constitution  are  not  the  same 
as  in  the  North  of  England.  The  board  consists  simply  of 
twelve  employers  and  twelve  operatives,  but  every  works  join- 
ing the  board  shall,  if  possible,  have  a  representative  of  the 
employers  and  a  representative  of  the  operatives.  The  board 
elects  a  president,  not  connected  with  the  iron  trade,  whose 
duty  it  is  to  attend  at  meetings  when  questions  are  brought 
before  the  board  to  be  settled,  but  to  take  no  part  in  the  dis- 
cussion, beyond  asking  explanations  sufficient  to  guide  his  judg- 
ment. 

Besides  the  president,  there  is  a  chairman  and  vice-chairman, 
who  are  elected  by  the  board  from  themselves,  but  whose  func- 

1  In  December,  1878. 

4 


26  INDUSTBIAL  CONCILIATION  AND  ARBITRATION. 

tions  are  not  clearly  defined  by  the  rules.  Instead  of  a  commit- 
tee of  inquiry,  the  rules,  which  are  not  very  precise,  say,  that 
"In  case  of  any  difference  arising  at  any  works,  it  is  intended 
that  it  shall  be  settled  by  the  works  representatives,  but,  in  case 
of  their  failing,  it  is  open  to  them  to  refer  it  to  the  chairman, 
vice-chairman,  and  the  two  secretaries,  who  may  call  the  board 
together  if  they  see  fit." 

The  president  of  the  board  is  Mr.  Joseph  Chamberlain,  M.P. 
for  Birmingham,  who  has  been  quite  successful  as  an  arbitrator, 
and  still  retains  the  confidence  of  the  operatives,  though  he 
has  for  several  years  been  forced,  by  the  state  of  the  trade,  to 
award  reductions  in  wages.  As  the  result  of  the  discussion, 
at  a  meeting  of  the  board,  held  Oct.  7,  1878,  wages  were  re- 
duced to  the  point  mentioned  above.  At  this  meeting,  Mr. 
Capper,  one  of  the  workingmen's  representatives,  stated  that 
the  reductions  conceded  since  January,  1874,  amounted  to  52^ 
per  cent.  Mr.  Chamberlain  stated,  however,  that  he  had  seen 
no  reason  to  believe  that  any  of  his  past  decisions  were  wrong, 
or,  in  fact,  that  they  were  not  such  as  were  absolutely  neces- 
sary, having  regard  to  the  state  of  trade.  In  the  course  of  his 
remarks,  he  asked  what  was  the  intention  and  object  of  a  board 
of  arbitration  ?  Surely  it  was  to  arrive  at  a  fair  decision,  with- 
out the  painful  necessity  of  a  strike.  If  this  was  so,  he  had  to 
ask  himself  what  would  be  the  result  of  a  strike,  if  there  were 
no  board.  Suppose,  for  a  moment,  there  were  no  board  of  con- 
ciliation to  settle  the  matter,  and  that  the  employers  thought 
themselves  entitled  to  ask  for  a  reduction  to  7s.  of  the  puddlers' 
wages.  Did  anybody  doubt  that,  grievous  as  such  a  reduction 
might  be  to  the  workpeople,  they  would  under  the  existing 
state  of  trade  be  obliged,  in  the  long-run,  to  submit  to  it  ?  He 
was  there  rather  as  a  conciliator  than  as  a  judge,  and  the  feeling 
he  had,  that,  if  there  were  no  board,  the  operatives  at  the  present 
time  must  yield  to  the  demands  made  by  the  employers  did 
certainly  weigh  with  him  very  much  in  considering  the  present 
application  of  the  employers. 

At  a  meeting  of  the  board,  held  since  this  report  has  been 
in  press,  the  members  on  both  sides  expressed  their  continued 
confidence  in  the  board,  and  their  implicit  faith  in  Mr.  Cham- 
berlain. 

As  the  two  districts  mentioned  are  among  the  largest  and 
most  important  of  the  iron-producing  districts  of  Great  Britain, 


INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 


27 


I  think  I  may  confidently  point  to  the  success  of  arbitration  in 
their  iron  mills,  as  giving  strong  grounds  for  predicting  the  suc- 
cess of  arbitration  in  our  iron  works,  were  it  tried.  The  fact 
that  good  feeling  has  been  fostered,  and  severe  reductions  of 
wages  accepted  without  strikes,  is  abundant  evidence  of  its 
value. 

SECTION  VI. 

ARBITRATION  AND  CONCILIATION  IN  THE  COAL  TRADE. 

The  working  of  arbitration  and  conciliation  in  the  coal  trade 
is  somewhat  different  from  its  history  in  the  iron  trade.  The 
nature  of  the  work  in  collieries  does  not  admit  of  so  many  dif- 
ferent trades  as  in  iron  working,  and,  as  a  result,  there  are  fewer 
unions.  They  are  larger,  more  united,  and  in  a  better  position 
to  enforce  any  demand  they  may  make.  Though  this  is  true, 
and  though,  further,  there  is  not,  with  possibly  an  exception, 
a  permanent  board  in  this  trade,  there  are  many  cases,  during 
the  last  few  years  especially,  in  which  differences  have  been 
adjusted  by  temporary  boards  or  an  arbitrator.  The  awards 
have  not  always  been  loyally  accepted.  It  is  too  much  to 
expect  that  they  would  be.  The  fluctuations  in  this  trade  in 
the  last  five  years  have  been  both  rapid  and  large,  and  the  strain 
on  any  system  that  could  be  devised  would  have  been  too  great 
not  to  have  caused  it  to  give  way  at  times.  Notwithstanding 
this,  after  a  careful  and  thorough  study  of  all  the  facts  I  do  not 
hesitate  to  say  that  arbitration  and  conciliation  in  the  coal  trade 
has  been  a  success.  The  wonder  is,  it  has  not  failed  oftener. 
There  have  been  cases  where  both  employers  and  employed  have 
refused  to  submit  their  demands  to  arbitration,  and  there  have 
been  cases  where  the  award,  when  made,  has  been  rejected  ;  but 
the  exceptions  are  so  few,  that  it  can  be  fairly  said  that  for  some 
years,  until  very  lately,  arbitration  has  settled  the  wages  ques- 
tion in  the  coal  trade,  and  both  sides  have  abided  its  results. 

To  illustrate  its  workings  in  detail  in  this  trade,  I  have  selected 
the  Northumberland,  Durham,  and  South  Wales  districts. 

In  the  Northumberland  coal  trade,  wages  and  other  industrial 
disputes  have  been  settled  for  some  years  by  conference  or  con- 
ciliation between  the  mine  owners  and  workmen,  each  side  hav- 
ing its  unions  or  associations.  Since  March,  1873,  up  to  the 
close  of  1877,  a  joint  committee  consisting  of  six  employers  and 


28  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


six  workmen  have  settled  all  questions  *'  of  mere  local  impor- 
tance affecting  individual  pits."  This  committee  had  no  power 
to  deal  with  the  question  of  wages.  When  this  was  to  be  dis- 
cussed, a  board  was  created  for  the  occasion,  consisting  generally 
of  two  arbitrators  for  each  side,  presided  over  by  an  umpire. 
Mr.  Rupert  Kettle,  who  acted  in  this  capacity  at  an  arbitration 
in  1875,  defined  the  constitution  of  the  court  very  clearly : 
*'  We  are  one  body  of  five,  and  if  by  and  by  it  shall  be  found 
that  you  are  two  and  two,  and  therefore  cannot  arrive  at  a  con- 
clusion, the  decision  will  be  with  me ;  but  until  that  time  ar- 
rives you  are  the  judges,  and  I  am  only  assisting  you." 

The  last  arbitration  in  this  trade  in  Northumberland  was  in 
July,  1877.  In  May  of  this  year,  the  employers  gave  notice  of 
a  reduction,  and  a  withdrawal  of  the  allowance  of  free  house  and 
free  coal.  The  men  refused  to  permit  the  reduction,  and  also 
an  offer  to  arbitrate ;  and  twelve  thousand  of  the  fourteen 
thousand  miners  in  the  district  went  out  on  a  strike.  So  bitter 
were  the  men  against  arbitration,  that  their  trusted  leaders  who 
suggested  it  were  hissed  and  hooted.  After  several  weeks'  idle- 
ness they,  however,  agreed  to  arbitrate. 

Two  arbitrators  were  appointed  on  each  side,  with  Mr. 
Farrer  Herschell,  M.  P.,  as  umpire.  This  arbitration  was  an 
important  one,  as  introducing  new  considerations  as  reasons  for 
reductions.  Tlie  emplo3-ers  did  not  rely  upon  the  claim  that 
there  had  been  such  a  reduction  in  the  selling  price  of  coal  as 
to  justify  a  reduction  in  wages,  but  claimed  it  on  the  ground 
that  other  districts  had  advantages  over  them  in  the  greater 
number  of  hours  worked  per  day,  and  days  per  week,  which, 
added  to  a  higher  wage  they  were  compelled  to  pay,  placed 
them  at  a  decided  disadvantage  in  the  market.  The  award  was 
in  favor  of  the  men;  but  it  recommended  that  the  men,  in  order 
to  aid  the  pit-owners  to  compete  with  other  districts,  should 
work  six  hours  instead  of  five,  at  the  face,  twelve  days  per  fort- 
night; to  increase  the  out-put  of  large  coal,  and  the  thro  wing- 
back  of  small  coal.  These  recommendations  practically  dis- 
credited the  umpire's  own  decision  ;  but  the}^  were  faithfully 
adhered  to  by  the  employers,  while  the  recommendations  were 
carried  out  with  little  grace  by  the  emploj^^s.  A  quarter  of  an 
hour  was  added  to  the  working  time,  and  the  other  recommen- 
dations were  ignored. 

This  arbitration  was  a  most  important  one  in  its  results.  On 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  29 


the  24th  of  November  of  the  same  year,  notice  of  a  reduction 
of  twelve  and  a  half  per  cent  was  posted ;  and  the  miners,  re- 
fusing to  accept,  went  on  strike  on  Dec.  7.  The  employers 
refused  to  withdraw  the  notice,  and  also,  in  view  of  the  circum- 
stances attending  the  last  trial,  refused  to  submit  their  case  to 
arbitration.  The  men  yielded  so  far  as  to  agree  to  accept  ten 
per  cent,  and  arbitrate  the  remaining  two  and  a  half  per  cent ; 
but  this  was  refused,  and,  after  eight  weeks'  strike,  the  men 
went  to  work  at  the  full  reduction.  I  have  given  this  case  in 
detail,  as  it  is  often  referred  to  as  showing  the  failure  of  arbi- 
tration. It  certainly  did  not  fail,  for  it  was  not  tried ;  and  no 
one  who  has  had  an  opportunity  to  know  the  present  feeling  of 
the  men  doubts  that  there  is  trouble  ahead.  The  employers, 
maybe,  have  been  justified  in  the  course  they  took.  As  to  its 
wisdom,  there  is  an  opportunity  for  discussion. 

In  the  Durham  coal  trade,  a  much  larger  one  than  the  North- 
umbrian, arbitration  is  in  full  operation,  though  it  has  been 
subject  to  a  most  severe  strain  in  the  large  reductions  of  wages 
that  have  been  decreed.  This  district  has  been  described  as 
one  in  which  "reason  and  calm  discussion  have  pre-eminently 
taken  the  place  of  force."  The  miners  in  this  region  number 
some  fifty  thousand.  Beginning  with  March,  1872,  up  to  May, 
1873,  wages  had  been  advanced  fifty-eight  and  one-half  per  cent. 
In  May,  1873,  the  decline  began,  wages  being  reduced  ten  per 
cent.  In  October,  1874,  Mr.  Russell  Gurney,  Recorder  of  Lon- 
don, after  a  very  exhaustive  investigation,  awarded  a  reduction 
of  nine  per  cent.  This  was  accepted,  though  not  with  very 
good  grace.  Mr.  Kettle  says  he  always  expects  a  little  sulking 
when  the  award  is  unpleasant.  So  great  was  the  depression, 
that  in  February,  1875,  only  three  months  after  the  announce- 
ment of  Mr.  Gurney's  award,  another  reduction  was  claimed, 
and  five  per  cent  awarded.  At  the  close  of  the  same  year,  Mr. 
Hopewood,  M.  P.,  was  appointed  arbitrator,  and  awarded,  in 
February,  ten  per  cent  reduction.  In  May,  1876,  a  notice  of  a 
reduction  of  ten  per  cent  was  given  and  arbitrated.  In  August, 
six  per  cent,  and  in  February,  1877,  ten  per  cent  more.  In 
March,  1877,  a  sliding  scale  was  adopted  for  two  years.  Under 
this  it  was  provided  that  any  differences  that  might  arise  were 
to  be  settled  by  reference.  All  these  reductions  have  been 
accepted,  —  not  always  pleasantly,  but  nevertheless  accepted; 
and  under  the  sliding  scale  the  men  are  now  working,  referring 
questions  as  they  arise  to  be  settled  by  conciliation. 


30  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 

In  South  Wales,  a  strike  occurred  in  1875,  lasting  seventeen 
weeks,  and  involving  120,000  workmen,  whose  loss  in  wages 
was  variously  estimated  at  from  £3,000,000  to  £5,000,000. 
This  was  settled  by  conciliation.  Immediately  after  this,  as 
the  result  of  an  extended  consultation,  a  sliding  scale,  based 
upon  the  selling  price  of  coal,  with  a  fixed  minimum  and  maxi- 
mum, was  adopted ;  all  other  differences  arising  to  be  settled  by 
arbitration.  In  1876,  several  reductions  resulted,  which  caused 
considerable  dissatisfaction,  and  a  vote  of  the  members  of  the 
union  was  taken  to  get  its  views  on  continuing  the  scale,  and 
abiding  by  its  action.  Eighteen  thousand  four  hundred  and 
seventy-five  voted  for  it,  and  8,934  voted  against  it,  though 
wages  had  been  in  some  cases  reduced  thirty  per  cent.  Late  in 
1877,  the  price  of  coal  had  fallen  so  low  that  the  "Coal  Masters' 
Association  "  asked  the  men  to  consent  to  lower  the  minimum 
of  the  scale  five  per  cent,  which  they  did,  confirming  their 
action  in  February,  1878,  and  again  in  June. 

There  have  been  other  arbitrations  than  these  in  the  coal 
trade  all  over  Great  Britain.  In  South  Yorkshire  and  North 
Derbyshire,  Mr.  Mundella  has  arbitrated  a  number  of  disputes 
the  present  year.^  At  Barnsly  an  eight  months'  strike  was  settled 
by  Mr.  Whitwell  and  Mr.  Mundella.  There  have  been  success- 
ful arbitrations  in  the  coal  trade  at  Ashton,  Oldham,  North 
Staffordshire,  Cleveland,  North  of  England,  and  Lancashire. 
In  South  Staffordshire,  a  sliding  scale  was  adopted  in  1874,  but 
its  working  was  not  satisfactory,  owing  to  the  decline  in  coal 
being  much  greater  than  was  expected.  At  Radstock  there 
have  been  two  awards,  one  by  Mr.  Kettle,  and  the  other  by  Mr. 
Thomas  Hughes,  M.  P.  In  North  Wales  there  have  been 
several  arbitrations.  In  all  these  cases  there  has  seemed  to  be 
an  earnest  desire  on  the  part  of  the  leaders  of  the  unions  to 
hold  the  men  to  the  award,  telling  them  that  they  were  bound 
in  honor,  and  threatening  to  withdraw  from  their  positions  if 
the  men  were  false  to  their  word.  The  Welsh  colliers  are 
rough,  uneducated  men,  however,  and  have  forgotten  honor  and 
interest,  and  rejected  awards  that  have  been  made,  and  at 
present,  arbitration  is  not  practised  in  this  district. 

1  1878. 


INDUSTKIAL  CONCILIATION  AND  ARBITRATION.  31 


SECTION  VII. 

ARBITRATION  IN  OTHER  INDUSTRIES. 

I  have  spoken  at  length  of  the  workings  of  arbitration  in  the 
coal  and  iron  trades,  for  the  reason  assigned,  —  that  they  are  the 
industries  in  which  our  State  has  so  large  an  interest.  It  must 
not  be  inferred  that  it  has  been  only  in  these  that  its  success 
has  been  obtained,  and  its  adaptation  for  the  purpose  designed 
established.  Of  its  workings  in  the  hosiery  trades  of  Notting- 
ham and  the  building  trades  of  Wolverhampton,  I  have  also 
given  an  account  in  previous  sections.  Of  its  workings  in 
other  industries,  I  can  give,  for  lack  of  space,  only  the  most 
meagre  account,  and  that  simply  for  the  purpose  of  showing  to 
what  a  diversity  of  cases  arbitration  is  applicable.  The  lace 
trade  of  Nottingham  has  a  board  which  was  started  very  soon 
after  Mr.  Mundella's  in  the  hosiery  trade.  As  the  rules  of  this 
board  are  regarded  by  this  gentleman  as  the  model  rules,  they 
are  given  in  full  in  the  Appendix.^  This  board  was  a  complete 
success  for  over  fifteen  years.  Latterly  there  has  been  some 
dissatisfaction  regarding  awards,  and  a  desire  to  repudiate 
them :  but  there  has  been  no  more  difficulty  than  was  to  have 
been  expected,  or  than  there  will  continue  to  be,  so  long  as 
human  nature  remains  human.  In  the  textile  trades  there 
have  been  but  few  attempts  at  systematic  arbitration.  The 
Macclesfield  silk  trade  had  a  board  suggested  by  the  Conseils 
des  Frud'hommes^  as  early  as  1849.  The  failure  of  this  board 
is  to  be  attributed  to  the  fact  that,  though  organized  to  put  an 
end  to  strikes  and  lock-outs,  it  used  them  as  a  means  to  compel 
obedience  to  its  awards.  In  other  branches  of  these  trades, 
notably  the  cotton  trades  of  East  Lancashire,  a  spasmodic  kind 
of  conciliation  has  been  practised  in  the  past ;  but  during  the 
recent  very  disastrous  lock-out,  though  arbitration  was  proffered 
by  the  employes,  it  was  refused  by  the  manufacturers,  on  the 
ground  that  there  was  nothing  to  arbitrate,  as  unless  they  could 
get  the  reduction  asked  for  they  must  cease  work. 

In  the  building  trades,  a  number  of  boards  have  been  estab- 
lished ;  and,  though  they  are  in  many  respects  very  complicated 
trades,  their  history  has  been  such  as  to  indicate  their  great 
usefulness  in  these  trades. 

1  See  Appendix  D. 


32  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Among  other  industries  in  which  arbitration  has  been  suc- 
cessfully tried,  may  be  mentioned  the  potteries,  iron  and  stone 
mining,  iron  tubing,  quarrying,  chemical,  and  boot  and  shoe. 
The  best  examples  of  the  workings  and  success  of  boards  are, 
however,  to  be  found  in  those  industries  treated  of  at  length  in 
preceding  sections. 

[We  add  to  this  section  of  Mr.  Weeks's  report  the  following 
data  obtained  from  the  resume  of  Mr.  Hill  previously  referred 
to,  Bureau  Report,  March,  1877.] 

According  to  the  record  of  Mr.  Crompton,  the  English  working-classes 
have  given  the  most  favorable  reception  to  the  proposal  for  courts  and  boards 
of  arbitration  or  conciliation.  As  far  back  as  1866,  Mr.  George  Odger  in- 
troduced the  subject  of  arbitration  at  a  large  meeting  in  Sheffield,  and  then 
expressed  his  opinion  that  strikes  were  to  the  social  world  what  wars  were  to 
the  political  world  :  they  became  crimes  unless  they  were  prompted  by  abso- 
lute necessity.  Where  industries  are  not  localized,  but,  on  the  contrary, 
scattered  over  the  country,  arbitration  arrangements  necessarily  become 
more  difficult.  In  the  more  highly  organized  of  these  trades,  the  question  of 
wages  is  not  so  often  raised  by  arbitration,  and  in  some,  very  slight  altera- 
tions have  taken  place  in  a  long  series  of  years.  The  engineers  have,  as  in 
the  case  of  the  nine  hours'  strike  at  Newcastle  in  1871,  so  ably  recorded  by 
Mr.  John  Burnett,  the  secretary  of  the  Amalgamated  Engineers,  been 
willing  to  submit  questions  in  dispute  to  arbitration ;  but  the  great  variety 
of  operatives  employed  in  this  industry  makes  the  system  more  difficult  to 
adjust  satisfactorily.  Mr.  John  Burnett  has,  however,  expressed  his  opinion 
that  "a  scheme  of  arbitration  might  be  arranged  so  as  to  apply  to  the 
various  peculiarities  of  the  engineering  trade." 

The  brass-workers  have  made  an  experiment  in  arbitration,  but  it  does 
not  seem  to  have  been  successful. 

At  Sheffield  the  employers  did  not  seem  disposed  to  meet  the  overtures  of 
the  men,  who,  through  the  carpenters,  desired  to  form  a  board. 

The  bricklayers  cannot  be  reported  as  having  distinctly  pledged  them- 
selves to  the  system  of  arbitration;  but  Mr.  Coulson,  the  secretary  of  the 
Operative  Bricklayers'  Society,  has  endeavored  to  establish  boards  as  oppor- 
tunities have  arisen. 

The  masons  have  not  as  a  class  shown  so  strong  a  desire  for  arbitration 
as  the  other  classes  of  building  operatives;  and,  in  the  language  of  Mr. 
Crompton,  "  they  have  a  conservative  tenacity  which  tends  to  prevent  them 
from  changing  some  practices  which  cannot  stand  the  test  of  criticism." 
At  Bristol,  however,  a  code  of  rules  has  been  drawn  up  between  the  Masters 
Association  and  that  of  the  Operative  Stone  Masons.  One  rule  provides 
that  "  six  employers  and  six  operatives  act  as  a  standing  committee  to  hear 
and  determine  any  minor  disputes  that  may  arise  from  time  to  time  as  to  the 
intention  and  working  of  the  rules,  and  their  decision  shall  be  equally  bind- 
ing on  both  parties,  and  no  suspensions  of  labor  shall  take  place  pending  the 
decision  of  the  conciliation  committee." 

Among  painters,  though  there  is  no  permanent  board  in  the  trade,  a  code 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  33 


of  working  rules  was  established  at  Manchester  in  1870,  agreed  upon  by  six 
operatives  and  six  employers.  According  to  this  code,  there  must  be  six 
months'  notice  of  any  change,  which  is  settled  by  conciliation  if  possible ;  if 
not,  by  reference  to  some  arbitrator.  At  Birmingham,  Coventry,  Leicester, 
and  Nottingham,  arbitration  has  also  taken  place  in  this  branch  of  trade. 

In  the  potteries  a  board  of  conciliation  and  arbitration  has  been  in  exist- 
ence since  1868  for  the  china  and  earthen  ware  manufactories.  The  board 
is  established  on  the  model  of  the  Nottingham  boards.  "  The  president 
presides  over  such  meetings  of  the  board  as  are  not  convened  for  the  pur- 
pose of  arbitration ;  but  a  standing  referee  presides  over  all  arbitrations  by 
the  board,  and  his  decision  is  final  in  the  event  of  an  equal  vote."  Mr. 
Crompton  points  out  that  the  advantage  of  this  seems  to  be,  that  the  referee 
is  not  called,  or  arbitration  attempted,  until  the  board  has  failed  to  settle  by 
conciliation ;  in  which  case  there  is  to  be  one  final  arbitration  arrived  at,  if 
possible,  without  difference.  The  award  is  made  subject  to  a  month's  notice 
on  either  side.    The  settlement  of  the  prices  of  labor  is,  however,  for  a  year. 

In  the  chemical  trade  of  Northumberland  and  Durham,  a  board  of  arbi- 
tration and  conciliation  was  established  in  1875 ;  but  it  is  of  too  recent  for- 
mation for  any  results  to.be  reported.  This  board  has  a  by-law  specially 
directed  against  strikes  and  lock-outs. 

In  the  boot  and  shoe  trade,  no  board  of  a  formal  character  has  yet  been 
established;  but  a  resolution  has  been  passed  at  Stafford  in  support  of  one  in 
the  future.  At  Leicester,  also,  steps  have  been  taken  recently  to  form  a 
similar  board. 

In  the  woollen  and  worsted  trades  of  Yorkshire,  there  have  been  no  boards 
of  arbitration  or  conciliation,  nor  has  arbitration  been  resorted  to  as  a  means 
of  settling  disputes. 

In  the  East  Lancashire  cotton  trade,  there  is  no  system  of  arbitration  or 
conciliation;  but  committees  composed  of  employers  and  employed  are  ap- 
pointed from  time  to  time  for  the  purpose  of  settling  disputes,  and  they 
argue  the  question  till  one  side  gives  in.  Mr.  Birtwhistle,  the  secretary  of 
the  East  Lancashire  Amalgamated  Weavers'  Association,  is  of  opinion  they 
ultimately  will  have  to  resort  to  arbitration. 

In  the  printing  trade,  a  court  of  arbitration  was  established  in  1853;  but 
the  court  broke  up  because  the  men,  while  accepting  the  award  as  a  decision 
in  an  actual  dispute,  refused  to  accept  it  as  a  decision  binding  in  all  other 
cases  arising  out  of  past  contracts,  and  involving  similar  questions. 

In  the  Typographical  Trades  Union,  arbitration  has  been  suggested,  but 
not  yet  adopted. 

At  Manchester,  a  question  in  dispute  has  been  settled,  however,  in  confer- 
ence between  the  masters  and  men  in  the  printing  trade. 

Among  unskilled  laborers,  with  the  exception  of  the  laborers  who  are 
represented  on  the  Birmingham  board  in  the  building  trade,  no  settled  form 
of  arbitration  has  as  yet  been  arranged;  and,  until  this  large  class  is  more 
thoroughly  organized  within  its  own  lines  by  union,  such  arbitration  will  be 
difl&cult,  if  not  indeed  impossible. 

Among  agricultural  laborers,  into  whose  ranks  the  spirit  of  organization 
is  fast  infusing  itself,  no  arbitration  has  yet  taken  place;  but  Mr.  Howard 
Evans,  editor  of  "  The  English  Laborer,"  Mr.  Crompton,  and  others  have 
written  in  favor  of  the  adoption  of  the  system  in  future  disputes. 


84  IISIDUSTKIAL  CONCILIATION  AND  AEBITEATION. 


SECTION  VIII. 

THE  ACCEPTANCE  OF   AWAEDS  BY  THE  PAETIES  TO  THE 
AEBITEATION. 

A  very  important  question  to  be  answered  in  arriving  at  a 
true  estimate  of  the  value  of  arbitration  and  conciliation  is,  How 
have  the  awards  of  the  boards  been  received  ?  Have  they  been 
frankly  accepted,  and  loyally  obeyed  ?  or  have  they  been  re- 
jected, or,  if  accepted,  received  sullenly,  and  obeyed  grudgingly, 
and  with  a  determination  to  renew  the  struggle  in  the  near 
future  ? 

So  far  as  relates  to  conciliation,  these  questions  are  easily 
answered.  From  its  very  nature,  its  awards  or  decisions  can 
meet  with  but  little  opposition.  When  differences  are  settled, 
through  the  good  offices  of  committees  of  inquiry,  or  the  con- 
ciliation committees  of  these  boards,  it  is  without  an  award,  and 
a  decision  is  reached  because  the  parties  themselves  agree  to 
such  decision  ;  and,  of  course,  in  such  cases  there  is  little  or  no 
opportunity  for  the  rejection  of  the  result.  The  same  is  true, 
though  not  so  generally,  where  conciliation  boards  exist  without 
a  final  appeal  to  an  umpire  or  referee.  In  these  cases  the  sub- 
ject in  controversy  is  settled  by  what  the  men  call  "  a  long  jaw," 
and  an  agreement  is  reached  by  a  compromise,  or  by  coming  to 
the  best  arrangement  possible  under  the  circumstances.  This  is 
a  contest,  to  be  sure ;  but  it  is  of  a  far  different  character  than 
a  strike  or  lock-out.  It  also  offers  an  opportunity  for  rejecting 
a  decision ;  and  under  the  working  of  the  Nottingham  board, 
which  is  on  this  principle,  there  have  been  cases  of  such  rejec- 
tion. Mr.  Mundella  mentions  one  example  of  a  small  branch 
of  the  hosiery  trade,  employing  some  two  hundred  men,  who 
made  a  demand  which  the  whole  board  deemed  unreasonable : 
the  representatives  of  this  branch  were  out-voted,  and,  in  a  fit 
of  ill-humor,  seceded  from  the  board.  They  found  themselves, 
however,  isolated,  and  deprived  of  all  sympathy  and  support, 
both  of  their  fellow-workmen  and  the  public ;  and  they  soon 
expressed  a  desire  to  be  restored  to  membership. 

Where  there  have  been  formal  arbitrations  and  awards,  espe- 
cially in  the  coal  and  iron  trades,  I  am  constrained  to  confess 
that  there  are  more  cases  of  rejection  or  attempted  rejection  of 
awards  than  there  should  be.    There  should  be  no  case  of  a 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


35 


refusal  to  accept  an  award  made  by  a  duly  appointed  umpire  or 
a  board.  It  is  worse  than  useless  to  submit  a  case  to  arbitra- 
tion, unless  both  parties  agree  to  be  bound  by  the  result,  and 
are  prepared  to  act  upon  it  in  good  faith.  The  parties  to  the 
arbitration  are  in  honor  bound  to  this  course,  however  unsatis- 
factory the  result  may  be,  or  however  unwelcome  the  award. 

It  is  unfortunate,  also,  that  most  of  the  repudiations  of  the 
awards  have  come  from  the  workmen,  and  these  have  at  times 
been  coupled  with  most  gratuitous  insults  to  the  gentlemen 
who  have  acted  as  arbitrators.  A  recent  case  of  this  kind  is  the 
action  of  the  nut  and  bolt  trades  of  Birmingham,  in  which  Mr. 
Chamberlain  acted  as  arbitrator.  The  award  was  not  rejected, 
but  Mr.  Chamberlain  was  so  grossly  insulted,  that  he  refused  in  an 
indignant  letter  to  serve  in  a  subsequent  case  in  the  same  trade. 
Mr.  Chamberlain  said,  I  have  always  been  of  the  opinion  that 
arbitration,  as  a  means  of  settling  such  disputes,  could  only  be 
successful  where  there  existed  on  both  sides  a  belief  in  the  prin- 
ciple, and  implicit  confidence  in  the  discretion,  impartiality,  and 
fairness,  of  the  arbitrator.  In  the  present  case,  these  conditions 
appear  to  be  wanting ;  for  you  will  recollect  that  when  recently, 
at  very  considerable  sacrifi(;e  of  time  and  trouble,  I  settled  a 
dispute  which  had  arisen  in  your  trade,  my  decision  was  made 
the  subject  of  abusive  complaint,  and  my  honor  was  called  in 
question,  and  improper  motives  were  attributed  to  me." 

Another  example  was  the  rejection  of  the  award  of  Mr.  Ser- 
geant Wheeler,  by  the  North  Wales  colliers,  who  stated  in  their 
resolutions  that  the  reduction  was  a  "  gross  imposition,"  and 
gave  notice  of  an  immediate  demand  for  twenty  per  cent  ad- 
vance.   A  three  months'  strike  grew  out  of  this. 

In  addition  to  these  cases  and  others  that  might  be  given, 
there  are  some  in  which  there  have  been  cases  of  disloyalty  to 
the  board  at  particular  works.  This  has  been  true,  even  in  the 
North  of  England.  It  is  interesting,  however,  to  find  that  the 
employers,  in  a  recent  document,  submitting  their  case  for  a 
reduction  of  wages,  most  readily  record  their  opinion,  that  with 
a  few  local  exceptions,  which  do  not  affect  the  general  principle, 
the  operatives,  as  a  body,  have  been  loyal  to  the  rules  of  the 
board,  —  one  of  these  rules  being,  that,  in  the  event  of  a  dis- 
pute, the  operative  shall  not  abandon  his  work,  but  continue 
his  employment,  pending  its  adjustment.  And  this  is  confirmed 
by  Mr.  Kettle.    He  writes  as  follows  :  "  Except  in  one  or  two 


36  INDUSTEIAL  CONCILIATION  AND  AEBITRATION. 


instances  of  a  few  days'  sulks  at  particular  works,  my  award 
being  against  the  workmen,  I  think  all  have  been  approved,  and 
all,  without  exception,  have  been  practically  acted  upon  ;  and 
for  six  years  the  peace  of  the  trade,  generally,  has  not  been 
interrupted." 

It  is  also  interesting  to  note  that  Mr.  Chamberlain,  at  a  recent 
meeting  of  the  South  Staffordshire  Conciliation  Board,  stated, 
that,  during  the  three  years  that  board  had  been  in  existence, 
three  successive  reductions  had  been  made  in  the  wages  of  the 
operative,  but  in  all  these  cases  his  award  had  been  strictly  ob- 
served, both  by  employers  and  employed. 

The  cases  that  have  occurred  when  awards  have  been  rejected 
have,  without  doubt,  brought  arbitration  somewhat  into  dis- 
repute. But  there  are  some  things  forgotten  by  those  who,  for 
these  few  cases,  condemn  the  principle.  It  should  be  remem- 
bered that  the  rejection  of  an  award  will  be  more  widely  known 
and  commented  upon  than  the  acceptance  of  a  score  ;  and  it 
must  further  be  remembered  that  the  test  to  which  this  princi- 
ple has  been  subjected  in  the  last  five  years  has  been  a  most 
severe  one.  Wages  in  the  coal  and  iron  trades  have  reached,  in 
some  cases,  a  lower  point  than  they  have  ever  touched  before.  A 
reduction  of  ten  per  cent,  or  even  five  per  cent,  has  come  to 
mean  want  and  misery ;  and  human  nature  is  often  too  strong 
for  honor.  The  wonder  is,  that  the  awards  have  not  been 
oftener  rejected.  Coming,  as  I  did,  from  a  district  in  which  the 
iron  workers  are  better  paid  than  in  any  other  district  in  the 
world,  and  seeing  the  self-restraint  of  the  iron  workers  of 
England,  in  the  face  of  constant  reductions  of  wages,  and 
the  too  evident  fact  that  others  were  to  come,  I  could  but  ad- 
mire the  honorable  action  of  the  men,  and  conceived  the  highest 
respect  for  the  principle  which  enabled  these  great  changes  to 
be  made  without  strikes  and  lock-outs. 

SECTION  IX. 

ADVANTAGES  OF  ARBITRATION. 

There  are  two,  or  possibly  three,  objects  sought  in  the  forma- 
tion of  boards  of  arbitration  and  conciliation.  The  first  is  to  pre- 
vent differences  between  employed  and  employers  from  becoming 
disputes,  and  leading  to  strikes  and  lock-outs ;  and  the  second 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  37 

is  to  settle  disputes  that  have  unfortunately  arisen,  and  to  put 
an  end  to  strikes  and  lock-outs,  should  they  occur.  The  third 
object,  which  is  possibly  included  under  the  first  mentioned,  is 
to  promote  mutual  confidence  and  respect  between  these  two 
classes.  The  only  sufficient  reason  for  the  adoption  of  the  prin- 
ciple is  that  it  accomplishes  these  purposes. 

Whether  it  has  accomplished  these  objects  in  the  trades  in 
which  it  has  been  fairly  tried  in  England,  can  be  judged  from 
the  facts  set  forth  in  the  preceding  pages  of  this  report.  For 
myself,  I  do  not  hesitate  to  say  that  it  is  not  only  the  best 
method  yet  devised,  but  the  only  rational  one,  for  adjusting  the 
relative  rights  of  employers  and  employed  under  the  present 
constitution  of  industrial  society.  In  making  this  statement, 
I  do  not  forget  the  method  by  strikes  and  lock-outs,  nor  do  I 
consider  it.  These  methods  are  neither  rational  nor  civilized. 
A  victory  or  a  defeat  for  either  side,  under  the  pressure  of 
strikes  or  lock-outs,  neither  proves  nor  disproves  the  justice  of 
a  position  assumed  ;  but  it  is  fair  to  infer  that  an  award  given 
by  a  board  of  arbitration,  after  due  consideration,  would  be  as 
near  just  and  right  as  it  is  possible  for  human  judgment  to 
reach.  It  is  to  be  observed,  also,  that  a  decision  of  a  board 
should  not  be,  and  in  most  cases  is  not,  regarded  as  a  victory 
by  one  side,  or  a  defeat  by  the  other.  There  is  no  exultation 
over  victory,  no  smart  over  defeat,  nor  a  determination  to  wait 
for  a  convenient  season  and  revenge.  The  burning  questions 
that  arise  are  settled  in  a  friendly  manner. 

Another  advantage  of  a  permanent  board  of  arbitration,  with 
stated  meetings,  is  that  it  furnishes  an  opportunity,  seldom  pos- 
sessed without  these,  for  the  workmen  to  obtain  a  knowledge 
of  the  needs  of  trade  and  the  demands  of  the  future  both  upon 
them  and  the  manufacturers.  Labor  troubles  are  as  often  the 
result  of  a  lack  of  information  as  to  the  true  state  of  a  trade,  as 
of  any  other  one  thing.  It  is  true  that  workmen  may  be  told 
the  facts  rendering  a  reduction  necessary ;  but  they  are  not 
inclined  to  credit  them,  and  believe  that  affairs  are  not  as  repre- 
sented. In  the  working  of  the  English  boards,  especially  in 
fixing  prices,  notice  is  taken  of  the  state  of  trade  and  competi- 
tion with  other  countries  and  other  districts,  and  the  information 
thus  gathered,  not  by  the  employer  members,  but  by  the  board, 
is  brought  to  bear  in  the  settlement  of  wages.  In  his  testimony 
before  the  Trades  Unions'  Commission  of  Parliament,  Mr.  Mun- 


38  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


della  says,  "  We  sent  two  of  the  workmen  to  France  last  year, 
and  a  third  to  Germany,  to  see  for  themselves  the  prices  paid 
there  for  that  work.  They  came  home,  and  said,  '  It  will  not 
do  :  we  must  be  content  as  we  are  for  the  present ; '  and  we 
produce  on  the  table  the  articles  made  in  France  and  Germany, 
and  the  men  are  convinced  by  their  own  senses  of  the  justice 
of  what  we  say,  and  by  their  knowledge  of  the  laws  that 
govern  trade,  because  this  system  has  been  a  complete  educa- 
tional process  for  our  men :  they  know  as  well  as  we  do 
whether  we  can  afford  an  advance,  or  not ;  they  know  whether 
the  demand  is  good,  or  bad,  and  at  what  prices  the  article  can 
be  made  in  France  or  Germany ;  and  they  are  accustomed  to 
consider  the  effect  of  a  fall  or  rise  in  cotton  just  as  we  do  ;  and, 
when  they  think  that  things  are  going  well,  they  ask  to  share 
in  the  benefit;  and,  when  they  think  that  things  are  going 
wrong,  they  are  willing  to  take  low  rates." 

Facts  gathered  in  this  way,  and  supplemented  by  statements  of 
those  in  whom  the  workmen  have  learned  to  have  a  degree  of 
confidence,  have  a  greater  influence  than  unnumbered  assertions 
of  men  who  are  brought  together  only  to  struggle  for  a  victory. 

This  suggests  another  and  a  most  important  advantage  of 
these  boards.  Accepting  the  fact  that  unions  of  workmen 
exist,  and  will  doubtless  continue  to  exist,  it  is  only  through 
boards  of  arbitration  or  conciliation  of  some  kind  that  the  trades 
unions  and  those  of  employers  can  meet  except  as  antagonists. 
The  manufacturer  and  his  workmen  can  never  be  brought  face 
to  face  to  discuss  trade  questions,  except  when  their  interests 
are  hostile.  With  these  boards  there  is  a  possibility  of  meeting 
as  fellow  members  of  the  same  trade,  whose  interests  are  indis- 
solubly  joined. 

Another  and  perhaps  the  most  important  advantage  of  these 
boards  is  the  bringing  of  employer  and  employed  together, 
and  thereby  increasing  their  respect  and  esteem  for  each  other, 
and  the  consequent  growth  of  confidence.  One  of  the  greatest 
barriers  to  an  understanding  between  capital  and  labor  is  a  feel- 
ing on  the  part  of  workingmen  that  they  are  regarded  as  holding 
a  servient  position,  and  a  feeling  on  the  part  of  manufacturers 
that  theirs  is  a  dominant  one.  Out  of  these  feelings,  which  are 
altogether  too  common,  come  a  brood  of  evils  that  have  cost  our 
industries  dear.  Even  when  nothing  is  further  from  the  mind 
than  the  thought  of  cherishing  such  sentiments  as  these,  suspi' 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  39 


cion,  ever  quick  to  grasp  an  appearance  for  a  reality,  catches  at 
sovie  chance  word ;  and  all  the  horrors  of  a  labor  war  are  the 
result.  Judge  Kettle,  in  speaking  of  strikes  from  matters  of 
sentiment,  says, — 

If  in  the  common  intercourse  of  life  this  is  felt,  how  much 
more  in  the  excitement  of  a  trade  dispute  must  men  be  sensitive 
to  influences  which  clash  with  their  just  estimate  of  their  own 
position;  and  still  more  keenly  must  they  be  felt,  when  those 
influences  are  directed  to  controvert  the  means  taken  to  main- 
tain what  they  believe  to  be  their  right." 

For  this  want  of  confidence  and  suspicion,  these  permanent 
boards  of  arbitration  furnish  a  remedy.  Confidence  is  cherished. 
The  intercourse  of  representative  workmen  with  representa- 
tive employers,  as  equals  with  equals,  breaks  down  all  class  dis- 
tinctions, removes  suspicion,  and  makes  the  task  of  harmonizing 
differences  a  much  simpler  proceeding. 

But  the  chief  advantage  of  these  boards  is  that  they  form  an 
open  market,  where  labor  and  capital  can  come  together,  and  in 
a  friendly  spirit  fix  what  is  "  a  fair  price  for  a  fair  day's  work." 
In  these  boards,  the  statements  made  by  each  side  can  be 
challenged,  each  other's  arguments  answered,  and  estimates 
impeached.  "  I  verily  believe  that,  without  limiting  the  influ- 
ence of  fair  competition,  boards  of  arbitration,  properly  worked, 
afford  the  best  means  of  fixing  the  market  price  for  a  fair  day's 
work.  I  believe,  moreover,  that  their  action  has  a  tendency  to 
secure  the  maximum  prices  which  are  consistent  with  steady 
employment,  and  that  the  presence  of  an  umpire  prevents  the 
ruinous  consequences  to  both  parties  which  follow  separation 
upon  a  disagreement." 

SECTION  X. 

DIFFICULTIES  OF  ARBITRATION,  AND  OBJECTIONS  TO  THE  SAME. 

In  the  course  of  this  report,  I  have  incidentally  referred  to 
the  difficulties  that  stand  in  the  way  of  the  successful  workings 
of  arbitration,  and  some  of  the  objections  to  the  same.  It  may 
not  be  amiss  to  group  together  some  of  these,  and  to  consider 
others,  selecting  those  that  may  be  regarded  as  typical  rather 
than  taking  up  each  objection  in  detail. 

The  chief  obstacle  encountered  in  the  formation  of  boards  of 


40 


INDUSTKIAL  CONCILIATION  AND  ARBITRATION. 


arbitration  and  conciliation,  as  well  as  in  the  earlier  operations 
of  the  same,  is  suspicion  and  prejudice.  These  are  the  sources 
of  some  of  the  most  bitter  and  ill-advised  strikes  and  lock-outs 
that  the  history  of  industry  has  known ;  and  it  is  this  tendency 
to  quarrel  upon  what  J  udge  Kettle  so  aptly  terms  "  matters  of 
sentiment,"  that  stands  most  in  the  way  of  arbitration.  Hap- 
pily, these  feelings  are  passing  away ;  a  more  intimate  knowl- 
edge and  a  more  generous  estimate  of  the  acts  of  each  other  are 
removing  this  suspicion  and  prejudice.  Once  boards  are  estab- 
lished, their  very  existence,  as  we  have  shown,  tends  to  the 
removal  of  all  sources  of  strife  founded  upon  passion  or  igno- 
rance. 

Another  difficulty  that  arises  immediately  upon  the  decision 
to  form  a  board  is  the  selection  of  an  umpire.  Shall  he  be  a 
permanent  officer,  or  chosen  to  decide  a  particular  case  ?  Shall 
he  be  practically  acquainted  with  the  trade  in  which  he  is  called 
to  act?  or  is  this  not  necessary,  so  that  he  have  the  other  quali- 
fications? These  are  questions  that  it  seems  almost  impossible 
to  answer  from  the  results  of  experience.  Judge  Kettle,  who  has 
been  a  most  successful  umpire  in  some  of  the  most  important 
arbitrations  in  England,  and  especially  in  the  coal  and  iron 
trades,  has  no  practical  knowledge  of  these  trades.  Mr.  Thomas 
Hughes,  M.  P.  C'Tom  Brown"),  Mr.  Herschell,  M.  P.,  Mr. 
Thomas  Brassey,  M.P.,  Mr.  Russell  Gurney,  Mr.  Henry  Cromp- 
ton,  and  others,  are  all  gentlemen  who  are  not  practically  con- 
nected with  manufacturing  or  mining,  but  have  been  very  suc- 
cessful as  arbitrators.  On  the  other  hand,  Mr.  A.  J.  Mundella, 
M.  P.,  Mr.  Joseph  Chamberlain,  M.  P.,  Mr.  David  Dale,  and 
others,  who  have  been  just  as  successful  umpires,  are  or  have 
been  very  extensive  manufacturers. 

On  the  part  of  the  workmen  there  have  been  very  strong 
objections  at  times  to  what  they  term  "  a  stranger  referee  ;  "  but 
it  will  be  found  that  the  success  of  a  referee  will  not  depend 
upon  his  practical  acquaintance  with  the  trade,  so  much  as  it 
will  upon  the  man  himself.  If  he  is  at  all  fitted  for  his  respon- 
sible position  in  other  ways,  he  can  gain  sufficient  knowledge  of 
the  trade  to  enable  him  to  give  a  just  and  intelligent  decision. 
It  seems,  however,  advisable,  that,  when  it  is  possible,  the  ref- 
eree should  be  an  officer  selected  by  the  board,  with  a  tenure  of 
office  the  same  as  the  board.  It  is  not  well  to  wait  until  the 
struggle  begins,  and  each  side,  perhaps,  is  striving  for  victory, 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  41 


and  all  they  can  get,  before  the  one  who  is  to  decide  between 
them  is  named.  It  is  best  to  select  him  when  judgment  and 
reason  rule.  In  this  country,  I  think  little  difficulty  will  be 
experienced  in  securing  umpires.  I  think  it  possible  to  name 
men  in  our  own  State,  in  whose  fairness  and  judgment  our  iron 
and  coal  industries  would  be  willing  to  confide. 

When  the  practical  operation  of  these  boards  is  considered, 
a  very  serious  difficulty  is  found  in  the  absence  of  any  recog- 
nized definite  principle  as  a  basis  on  which  awards  shall  be 
made.  For  example :  First  and  foremost  among  industrial  ques- 
tions, is  that  relative  to  the  wages  of  labor.  When  this  is  before 
a  board  for  decision,  the  question  arises  at  once.  What  shall  be 
the  basis  upon  which  the  award  shall  be  made  ?  It  is  because 
of  this  very  difficulty  that  arbitration  boards  exist.  If  there 
were  such  a  basis  definitely  established,  and  universally  acknowl- 
edged, the  decision  as  to  the  wages  at  a  given  time  would  be 
a  simple  question  of  arithmetic  or  of  book-keeping.  It  is  to 
endeavor  to  discover  what  is  fair  and  right  at  a  given  time  that 
these  boards  are  organized.  As  a  matter  of  information,  it  may 
be  said,  that  in  the  practical  operation  of  the  boards,  while  all 
the  facts  relative  to  prices,  competition,  demand  and  supply, 
both  of  labor  and  products,  are  considered,  wages  are  generally 
based  on  the  selling  price  of  the  articles  produced.  Mr.  Kettle, 
in  a  noted  arbitration  in  the  coal  trade,  found  a  certain  date  at 
which  the  wages  paid  for  work  about  the  collieries  were  satis- 
factory to  both  sides.  This  became  the  ideal,  and  served  to  fix, 
in  a  general  way,  a  ratio  of  wages  to  prices  that  would  be  a 
satisfactory  one  to  both  parties.  Due  notice  was  taken  of  any 
changes  that  had  occurred  that  should  serve  to  increase  or 
diminish  this  ratio,  such  as  reduction  in  the  hours  of  labor,  in- 
creased expense  from  mine  inspection  laws,  etc. ;  and  the  arbi- 
trator in  his  award  endeavored  to  approximate  this  ratio  as  near 
as  could  be  done  without  injustice  or  injury. 

It  has  been  objected  to  this  course,  that  it  involves  an  exposure 
of  secrets  in  connection  with  one's  business,  that  a  manufacturer 
should  not  be  called  upon  to  make.  To  arrive  at  the  wages 
paid  and  prices  received  for  any  commodity  at  a  given  time,  an 
inspection  of  books  is  necessary.  This  objection  must  arise 
from  a  misapprehension  of  what  is  really  done.  The  books  are 
not  brought  into  the  board,  nor  are  the  arbitrators  as  a  body, 
nor  any  one  of  them,  permitted  to  inspect  them.    An  accountant, 

6 


42  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 

sworn  not  to  divulge  the  details,  but  only  the  results,  and  these 
only  to  the  board,  unless  they  direct  differently,  is  elected.  He 
ascertains  not  how  much  it  has  cost  to  produce  an  article,  unless 
so  agreed  upon,  nor  how  much  profit  has  been  made  ;  but  what 
was  the  actual  selling  price  of  the  commodity  at  the  times  desired. 
There  can  be  no  objection  to  this.  No  secrets  are  divulged, 
the  accountant  covering  his  work  in  such  a  way  that  it  is  impos- 
sible to  trace  a  sale. 

It  is  further  argued,  as  against  arbitration,  that  an  umpire  • 
may  make  mistakes.  They  are  human,  and  consequently  liable 
to  err.  What  would  be  the  result  if  they  did?  It  would  be  a 
very  careless  or  ignorant  umpire,  one  who  had  no  business  to 
occupy  the  position,  who  would  make  a  mistake  of,  say,  two  per 
cent  in  his  award.  This  would  be,  if  the  award  held  for  six 
months,  equal  to  about  half  a  week's  work,  —  three  days. 
Would  not  this  loss  be  better  than  a  strike  or  a  lock-out  for 
probably  many  times  this?  A  more  pertinent  answer  to  this 
objection  might  be  to  ask  the  question,  whether  an  arbitrator  is 
any  more  liable  to  make  a  wrong  decision  than  a  strike  or  lock- 
out? that  is,  is  cool  deliberation  more  liable  to  err  than  passion- 
ate impulse  ? 

There  is  another  objection  that  I  imagine  will  have  more 
weight  in  England  than  in  this  country.  It  is  that  arbitration 
is  an  attempt  to  interfere  with  the  operation  of  natural  laws  — 
by  which  term  is  meant  the  politico-economical  theories  of 
Adam  Smith  and  his  successors  and  followers.  It  is  not  ger- 
mane to  the  purpose  of  this  report,  to  discuss  the  truth  or  falsity 
of  these  theories.  It  is  enough  for  us  to  say  that  at  present  our 
knowledge  as  to  industrial  laws  is  extremely  limited,  and  that 
the  assumed  facts  upon  which  theories  have  been  based,  or  from 
which  these  laws  are  deduced,  have  been  questioned  by  some 
able  political  economists.  However  this  may  be,  the  law  or 
theory  is  good  only  so  long  as  the  facts  or  phenomena  remain 
the  same.  There  is  nothing  eternal  in  an  economic  law ;  and 
when  the  facts  change,  or  are  modified,  then  the  law,  which  is 
only  a  statement  of  these  facts  and  their  relations,  changes,  or  is 
modified.  Would  it  be  wise  or  truthful  to  say  that  the  facts  or 
phenomena  of  labor  have  not  undergone  a  wonderful  change  in 
the  past  century?  Have  not  elements  been  introduced  that 
promise  permanence,  that  have  produced  marked  changes  in  the 
relation  of  labor  to  employment,  and  demand  changes  in  the 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  43 


statements  of  these  relations,  or,  in  other  words,  of  the  laws  ? 
But  no  argument  is  necessary  on  this  point.  No  one  will  deny 
that  interference  with  these  laws  is  possible.  Demand  or  supply 
may  be  increased  or  diminished,  and  thus,  by  a  deliberate  inter- 
ference, changes  to  our  advantage  or  disadvantage  made  to 
occur. 

Just  here,  I  suggest,  the  vital  question  as  to  the  advantage  or 
disadvantage  of  arbitration  is  to  be  asked.  We  must  acknowl- 
edge, that,  just  so  long  as  labor  maintains  its  present  constitu- 
tion, interference  with  these  so-called  laws  will  occur.  Now, 
is  it  better  to  interfere  with  these  laws  by  the  peaceful  and 
fiiendly  methods  of  arbitration  and  conciliation,  or  by  the  de- 
structive and  hostile  ones  of  strikes  and  lock-outs  ? 

SECTION  XI. 

THE  RELATION  OF  TRADES  UNIONS  TO  ARBITRATION. 

A  most  interesting  and  important  study  in  connection  with 
this  subject  is  its  relations  to  trade  unions;  that  is,  how  do 
these  societies  regard  arbitration  and  conciliation  as  a'  means 
for  settling  industrial  questions  ?  What  part  should  they  have 
in  the  formation  of  boards,  the  conduct  of  cases,  and  the  en- 
forcement of  awards?  Whatever  may  be  one's  views  of  trade 
unionism,  it  is  a  fact,  and  will  doubtless  continue  to  be  one. 
It  is  more  than  probable,  that  not  onl}^  in  England,  but  in  all 
countries,  labor  will  tend  more  and  more  to  combination,  at 
least  until  there  is  some  radical  change  in  the  relations  of  capi- 
tal and  labor,  and  the  decisions,  as  to  rates  of  wages  and  other 
economic  questions,  will  be  largely  controlled  by  these  combi- 
nations. I  am  aware  that  there  are  certain  economic  laws,  the 
action  of  which  no  union  can  prevent,  however  much  it  may 
hinder,  and  these  laws  will,  in  spite  of  unions,  prevail ;  but 
even  the  outcome  of  many  of  these  may  be  very  much  modified, 
and  of  others  entirely  moulded,  by  combinations.  It  is  not 
germane  to  my  purpose  to  enter  into  a  discussion  of  how  far 
unions  can  affect  the  rewards  of  labor.  It  is  a  fact  that  they 
do ;  and  so  great  an  authority  as  the  Duke  of  Argyle,  in  his 

Reign  of  Law,"  ^  states  that  combinations  of  workingmen  for 

1  The  Reign  of  Law,  by  the  Duke  of  Argyle.  16th  edition.  London :  1872. 
Page  373. 


44  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


the  protection  of  their  labor  are  recoramended  alike  by  reason 
and  experience. 

Such  combinations  cannot  fairly  be  objected  to.  They  are 
but  unions  of  the  workingmen's  capital,  —  labor ;  and  it  is  a 
question,  if,  after  all  that  has  been  said  about  the  evils  of  union- 
ism, it  is  not  better  to  have  organized  labor  which  is  always 
somewhat  conservative,  than  disorganized  lab  or  which  is  radical, 
and  which,  when  it  unites,  becomes  a  mob,  with  no  past  to  con- 
serve and  no  future  for  which  to  provide . 

These  unions  have  been  a  large  factor  in  freeing  labor  in 
Europe  from  the  industrial  slavery  of  the  feudal  system,  and  in 
bringing  about  industrial  independence  under  the  restraint  of 
an  enlightened  intelligence,  and  equitable  customs  and  laws. 
Notwithstanding  some  of  the  black  pages  of  the  history  of 
English  unionism,  it  has  been  a  benefit  to  English  labor,  and  an 
important  means  of  its  advancement.  It  is  destined  largely  to 
rule  it,  and  direct  its  future ;  and  in  proportion  as  it  surrenders 
its  indefensible  practices,  will  be  its  value. 

It  is  these  facts  that  make  important  the  views  of  trades 
unions  as  to  arbitration. 

As  to  their  views  in  general,  it  can  be  said  that  they  have  for 
years  been  its  warmest  advocates.  The  report  of  the  Trades 
Union  Committee  of  the  Social  Science  Association,  made  in 
1860,  is  full  of  evidences  of  the  truth  of  this  statement.  The 
two  largest  industrial  interests  in  England  to-day  are  the  coal 
and  iron.  They  have  the  largest  and  most  ably  managed  of 
the  unions  of  that  country.  In  an  interview  which  I  had  with 
Mr.  Thomas  Burt,  once  a  miner,  and  now  a  member  of  Parlia- 
ment, elected  by  the  coal  miners,  he  expressed  his  warm  appro- 
val of  the  principle  of  arbitration. 

Mr.  Edward  Trow,  the  successor  of  Mr.  John  Kane  as 
secretary  of  the  National  Amalgamated  Association  of  Iron 
Workers,  writes  me  as  follows :  "  With  regard  to  my  views  on 
arbitration,  I  believe  it  is  the  only  fair  and  honorable  mode  that 
can  be  adopted  for  settlement  of  questions  between  capital  and 
labor ;  that  where  both  parties  meet  with  an  earnest  desire  for 
a  fair  and  honorable  arrangement,  and  discuss  the  various 
questions  in  dispute  in  a  kind  and  conciliatory  spirit,  there  is 
no  fear  of  failure,  but,  on  the  contrary,  the  old  feeling  of 
mistrust  and  jealousy  is  banished,  and  confidence  in  each  other 
is  established. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  45 

"  The  fault  in  connection  with  arbitration  is  when  workmen 
come  to  meetings  jealous  and  suspicious,  believing  that  em- 
ployers are  their  natural  enemies ;  and  employers,  by  not  con- 
versing with  delegates  in  a  free  and  friendly  spirit,  foster  their 
suspicion ;  and  only  through  this  action  is  there  any  fear  of  fail- 
ure. Arbitration  in  England  is  regarded  with  great  favor  by 
the  workingmen,  and  only  in  a  few  solitary  exceptions  has  it 
been  refused,  or  its  awards  been  rejected  by  workmen. 

"If  you  wish  arbitration  to  be  successful,  employers  must 
meet  delegates  in  a  kind  and  conciliatory  spirit,  so  as  to  gain 
the  confidence  of  the  workmen  by  proving  that  they  only 
desire  full  and  free  discussion,  and  that  no  advantage  will  be 
taken  of  men  for  speaking  their  opinions.  Let  this  be  done, 
and  arbitration  will  prove  successful,  and  will  be  a  blessing  to 
employers  and  workmen." 

The  rules  of  this  association,  which,  at  the  time  they  were 
drawn  up,  numbered  thirty-five  thousand  members,  contain 
the  following  clauses  :  — 

Arbitration  to  he  Offered  in  all  Disputes, 

16.  That  in  the  event  of  any  misunderstanding  or  dispute 
arising  with  the  members  at  any  works  and  their  employers,  if 
connected  with  the  North  of  England  Board  of  Conciliation 
and  Arbitration,  they  shall,  in  the  first  instance,  refer  the  par- 
ticulars of  their  grievance  to  the  general  secretary,  who  shall 
investigate  the  claims  of  the  applicants  according  to  the  spirit 
of  the  arbitration  rules,  and  endeavor  to  settle  the  matters 
referred  to  him.  In  the  event  of  the  general  secretary  being 
unable  to  settle  any  question  calculated  to  produce  irritation 
betwixt  employer  and  employed,  he  shall  call  upon  the  stand- 
ing committee  to  hold  a  meeting  at  an  early  day  for  the  due 
consideration  and  settlement  of  such  matters  in  dispute ;  and, 
if  necessary,  the  full  board  shall  be  summoned  to  settle  the 
same. 

If  a  dispute  takes  place  at  any  works  not  connected  with  the 
Northern  Board  of  Arbitration  and  Conciliation,  the  general  sec- 
retary shall  hold  a  meeting  with  the  general  council  to  consider 
and,  if  possible,  to  settle  the  same.  If  desirable,  a  deputation 
from  the  council  shall  visit  the  works,  in  accordance  with  the 
instruction  given  by  the  general  council. 


46 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


The  Duty  of  Members  to  form  Arbitration  Boards. 

17.  Where  works  are  not  connected  with  the  board,  the 
members  of  this  association  shall  use  their  influence  with  em- 
ployers and  others,  to  join  the  present  board,  and  to  form  new 
boards  to  suit  the  local  circumstances  of  such  works  and  work- 
men. And  in  case  any  dispute  should  arise  where  a  board  of 
conciliation  and  arbitration  has  not  been  formed,  the  workmen, 
who  are  members  of  this  association,  shall,  before  any  step  be 
taken  calculated  to  produce  a  loss  of  emploj^ment,  first  make  an 
offer  in  writing  to  the  employer  or  employers,  to  settle  the  ques- 
tion in  dispute  by  an  appeal  to  conciliation  and  arbitration. 

The  above  forms  part  of  the  organic  law  of  one  of  the  most 
influential  of  English  trade  organizations. 

There  is  held  yearly  in  England  a  convention  known  as  the 
Trades  Union  Congress,  or,  as  it  is  familiarly  called,  the  Labor 
Parliament.  This  is  a  very  important  body,  composed  of  dele- 
gates from  the  various  unions  of  Great  Britain.  At  the  ninth 
convention,  held  in  1876,  at  which  113  societies  and  557,488 
members  were  represented,  the  following  resolution  was  car- 
ried :  — 

That  this  meeting,  recognizing  the  benefits  conferred  on 
many  of  our  great  industries  by  the  adoption  of  the  principles 
of  arbitration  and  conciliation,  pledges  itself  to  use  every  en- 
deavor to  extend  the  application  of  those  principles  to  cases  of 
dispute  in  which  there  may  be  a  prospect  of  peaceful  settlement 
by  such  means." 

At  the  tenth  session,  held  at  Leicester  in  1877,  at  which  112 
societies  and  691,089  members  were  represented,  the  president 
elect,  on  taking  his  seat,  said,  — 

"  The  principle  of  appeal  to  facts  and  reasons  instead  of  brute 
force  is  rational,  and  at  once  commends  itself  to  the  judgment 
of  men.  There  is  no  wonder,  therefore,  that  the  principle  of 
arbitration  for  settling  disputes  has  grown  very  rapidly.  In 
the  hosiery  trade  in  the  midland  counties,  we  were  among  the 
first  who  adopted  it,  and  we  do  not  regret  having  done  so.  The 
workmen  sometimes  have  had  adverse  decisions  ;  but  on  the 
whole  it  has  worked  better  than  the  old  mode.  It  is  gratifying 
to  find  that  the  workmen  generally  are  the  first  to  adopt  this 
intelligent  and  enlightened  system.    In  some  disputes  which 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


47 


have  arisen  in  the  country,  notably  the  West  Lancashire  strike, 
the  employers  refused  to  submit  to  arbitration,  although  the 
men  suggested  it  on  three  occasions.  My  own  experience  as  a 
member  of  one  of  these  boards  has  led  me  to  this  conclusion: 
If  a  board  be  properly  constituted,  and  proper  arrangements 
are  made  to  give  publicity  to  the  facts  of  a  case,  the  result  gen- 
erally will  be  a  righteous  award.  I  was  glad  to  hear  that  the 
National  Miners'  Union  have  decided  to  offer  arbitration  in 
every  dispute,  and  it  forms  a  part  of  their  rules.  It  is  a  rational 
arrangement,  and  it  would  be  a  good  thing  if  all  would  adopt 
it.  I  think,  too,  arbitration  boards  should  be  open  to  the  press 
and  the  public.  Workmen  have  nothing  to  fear  from  either  the 
one  or  the  other.  We  want  right  and  justice  to  rule,  and  we 
are  not  afraid  of  publicity.  When  men  and  employers  gather 
round  a  board  to  talk  over  differences,  and  try  to  adjust  them, 
they  give  evidence  of  their  manhood.  Beasts  and  reptiles  fight 
and  tear  each  other,  and  carry  out  the  law  of  the  strongest; 
but  men  reason  and  think,  and  by  this  means  shoAV  their  dig- 
nity, and  arrive  at  much  better  conclusions  and  far  less  costly. 
Boards  for  settling  disputes  would  not  do  away  with  unions : 
they  would  still  be  needed,  and  under  increased  necessity  to 
enforce  the  decision  of  the  board  when  given  in  favor  of  the 
workmen." 

The  constituency  which  these  bodies  represent  is  so  large  as 
to  fully  justify  the  statement  that  the  trades  unions  of  Great 
Britain  are  decidedly  in  favor  of  the  principle  of  arbitration  as 
a  means  of  settling  labor  disputes. 

In  the  practical  workings  of  arbitration,  trades  unions  have 
been  found  essential  to  its  success.  They  have  formed  the  cen- 
tre around  which  the  entire  body  of  labor,  non-unionist  as  well 
as  unionist,  has  gathered,  and  by  which  the  workmen  members 
of  the  boards  have  been  elected.  As  the  result  of  his  long 
experience,  Mr.  Kettle  says,  — 

I  confess  I  see  no  organization  but  trades  unions  to  fall  back 
upon  for  the  purpose  of  conducting  the  business  of  electing 
workmen  delegates.  It  must  be  distinctly  understood  that  I 
do  not  here  intend  that  members  of  a  trade  society  should  elect 
the  workmen's  arbitrators.  In  all  our  staple  trades  there  are 
unions,  but  the  proportion  of  their  members,  to  the  total  num- 
ber of  workmen,  differs  greatly  in  different  trades.  In  all  there 
are  a  greater  number  of  what  are  called  non-society  men. 


48  INDUSTRIAL  CONCILIATION^  AND  ABBITRATION. 


"  All  the  workmen,  whether  unionists  or  not,  should  be  rep- 
resented at  the  arbitration  board.  I  suggest  that  the  trades- 
union  organization  is,  at  present,  the  most  accessible  means  of 
carrying  this  out." 

The  organized  union  also  gathers  the  facts  upon  which  the 
arguments  for  the  labor  side  are  based ;  and  it  is  in  them  that 
the  moral  power  resides  which  has  been  found  not  only  essen- 
tial, but  sufficient  to  the  enforcing  of  the  awards  of  the  boards. 

SECTION  XII. 

ARBITRATION  AND  THE  STATE. 

As  has  already  been  stated,  arbitration  and  conciliation  in 
their  practical  workings  in  England  have  been  purely  volun- 
tary. Not  only  is  this  true  of  the  submission  of  the  dispute  or 
difference,  but  of  the  acceptance  and  carrying  out  of  the  awards. 
The  very  nature  of  conciliation  precludes  the  idea  of  legal  sanc- 
tions for  its  awards,  or  a  legal  enforcement  of  the  same.  With 
arbitration  it  is  different:  its  methods  are  nearer  those  of  a 
court  of  law,  and  its  decisions  somewhat  of  the  nature  of  ver- 
dicts based  on  testimony,  and  it  is  possible  to  give  them  the  force 
of  judicial  decisions,  capable  of  enforcement,  with  penalties  in 
case  of  evasion.  Some  of  the  warmest  and  most  intelligent 
advocates  of  arbitration  have  insisted  that  arbitration  should 
have  this  legal  aspect ;  while  others,  equally  friendly  and  intel- 
ligent, have  argued  that  to  take  away  its  purely  voluntary  char- 
acter would  be  to  destroy  its  usefulness. 

There  are  at  present,  in  the  statute  books  of  Great  Britain, 
three  acts  relating  to  arbitration,  —  the  first  of  these,  passed  in 
1824,  and  generally  referred  to  as  5  George  IV.,  cap.  96 ;  and 
the  others  later,  passed  in  1867  and  1872,i  known  commonly, 
respectively,  as  Lord  St.  Leonards'  and  Mr.  Mundella's. 

The  first  of  these  acts  is  evidently  based  on  the  French  law 
for  the  establishment  of  Conseih  des  Prud'hommes,  and,  like 
that,  gives  considerable  powers  of  compulsory  arbitration. 
There  is  no  permanent  board  or  council  established,  but  a  jus- 
tice of  the  peace  or  a  referee  appointed  by  him  acts  as  umpire 
or  referee.  The  operation  of  the  act  is  restricted  to  disputes 
in  certain  trades,  and  upon  certain  subjects;  and,  although  it 

1  The  act  of  1872  will  be  found  in  full  in  Appendix  E. 


INDUSTEIAL  CONCILIATION  AND  ARBITRATION.  49 

admits  of  very  extensive  application,  yet  the  act  has  not  been 
generally  received  with  favor.  It  only  provides  for  the  settle- 
ment of  existing  and  not  future  disputes,  and  contains  a  pro- 
viso that  nothing  in  this  act  contained  shall  authorize  any 
justice  or  justices,  acting  as  hereafter  mentioned,  to  establish  a 
rate  of  wages,  or  price  of  labor  or  workmanship,  at  which  the 
workmen  shall  in  future  be  paid,  unless  with  the  mutual  con- 
sent of  both  masters  and  workmen."  The  time,  also,  within 
which  complaint  is  to  be  made,  is,  as  to  disputes  about  materials, 
within  three  weeks,  and,  as  to  complaints  from  any  other  cause, 
within  three  days. 

As  to  the  character  of  the  awards.  Sect.  13  of  this  act  pro- 
vides :  — 

As  well  in  all  such  cases  of  dispute  as  aforesaid  "  (meaning 
those  enumerated  in  the  second  section)  "  as  in  all  other  cases, 
if  the  parties  mutually  agree  that  the  matter  in  dispute  shall  be 
arbitrated  and  determined  in  a  different  mode  to  the  one  hereby 
prescribed"  (that  is,  by  justices,  referees,  etc.),  "such  agree- 
ment shall  be  valid,  and  the  award  and  determination  thereon 
final  aad  conclusive  between  the  parties,  and  the  same  proceed- 
ings of  distress,  sale,  and  imprisonment,  as  hereafter  mentioned, 
shall  be  had  towards  enforcing  such  awards  "  (by  application 
to  any  justice  of  the  peace  of  the  county,  stewartry,  riding, 
division,  barony,  city,  town,  burg,  or  place  within  which  the 
parties  shall  reside)  "  as  are  by  this  act  prescribed  for  enfor- 
cing awards  made  under  and  by  virtue  of  its  provisions." 

The  proceedings  to  enforce  awards  are  as  follows :  Sect.  47 
enacts  that,  "  If  any  party  shall  refuse  or  delay  to  fulfil  an 
award  under  this  act  for  the  space  of  two  days  after  the  same 
shall  have  been  reduced  into  writing,  it  shall  be  lawful  for  any 
such  justice  as  aforesaid,  on  application  of  the  party  aggrieved, 
and  he  is  hereby  required  by  writing  under  his  hand,  according 
to  the  form  (A)  of  the  schedule  hereunto  annexed,  or  in  some 
other  form  to  the  like  effect,  to  cause  the  sum  and  sums  of 
money  directed  to  be  paid  by  any  such  award  to  be  levied  by 
distress  and  sale  of  any  goods  and  chattels  of  the  person  or  per- 
sons liable  to  pay  the  same,  together  with  all  costs,"  etc.  And, 
in  case  there  is  no  sufficient  distress,  "  it  shall  be  lawful  for  any 
justice,  as  aforesaid,  and  he  is'  hereby  required  by  warrant 
under  his  hand,  according  to  the  form  (C)  of  the  schedule  here- 
unto annexed,  or  in  some  other  form  to  the  like  effect,  to  com- 

7 


50  mDUSTRTAL  CONCILIATION  AND  ARBITRATION. 


mit  the  person  or  persons  so  liable  as  aforesaid  to  the  common 
gaol  or  some  house  of  correction  within  his  or  their  jurisdic- 
tion, there  to  remain  without  bail  for  any  time  not  exceeding 
three  months." 

Sect.  25  provides  for  committal  to  prison  in  the  first  in- 
stance, where  the  justices  think  the  issuing  of  a  distress  war- 
rant would  "  be  attended  with  consequences  ruinous  or  in  an 
especial  manner  injurious  to  the  defaulter  and  his  family." 

Sect.  26  provides  for  the  release  from  prison  upon  paying  by 
the  person  committed  "  to  the  governor  or  keeper  of  the  prison 
the  full  amount  of  the  sum  awarded,  with  all  reasonable  ex- 
penses incurred  through  such  refusal  or  delay." 

Sect.  28  says:  ''No  appeal  or  certiorari  shall  lie  against  any 
proceedings  under  this  act ;  "  and  Sect.  20,  that  "  no  proceed- 
ings under  this  act  shall  be  invalid  for  want  of  form." 

The  fees  to  be  taken  under  the  act  are  very  low,  —  2c?.  for  a 
summons,  4c?.  for  an  order,  Qd.  for  a  warrant,  4:d.  for  service  of 
summons  or  order,  Is.  for  execution  and  sale,  3c?.  per  diem  for 
custody  of  goods,  etc. 

The  act  of  1867,  commonly  called  Lord  St.  Leonards'  Act,  is 
entitled  "  An  act  to  establish  equitable  councils  of  conciliation 
to  adjust  differences  between  masters  and  men."  Quoting  Mr. 
Kettle's  analysis  of  this  act :  "  It  proposes  that  the  councils 
should  be  formed  under  license  of  the  Home  Secretary,  granted 
upon  the  petition  of  masters  and  men  in  any  particular  trade 
or  place  ;  such  petition  to  be  based  upon  the  resolution  of  a 
public  meeting  called  for  that  purpose.  This  is  subject  to  cer- 
tain restrictive  conditions  as  to  residence  and  other  qualifica- 
tions. The  bill  provides  that  the  petitioners  shall  elect  the  first 
council,  and  that  succeeding  councils  should  be  elected  each  by 
registered  members  of  the  trade  —  masters  and  men — who 
shall  be  licensed  by  the  council,  and  have  resided  six  months  in 
the  town,  etc.,  and,  as  to  men,  have  worked  seven  years  in  the 
trade.  The  bill  further  provides  for  the  appointment  of  a  chair- 
man (who  must  be  unconnected  with  the  trade),  a  clerk,  and 
other  officers.  It  also  provides  for  registration,  polling,  the 
holding  of  meetings,  the  making  of  by-laws,  and  other  matters 
necessary  to  carry  on  proceedings  as  a  body  corporate. 

"  The  provision  for  determining  disputes  is  Sect.  5,  and  is 
as  follows  :  '  That  a  quorum  of  not  less  than  three  (one  being 
a  master,  and  another  a  workman,  and  the  third  the  chairman) 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  51 


may  constitute  a  council  for  the  hearing  and  adjudication  of 
cases  of  dispute,  and  may  accordingly  make  their  award ;  but  a 
committee  of  council,  to  be  denominated  the  committee  of  con- 
ciliation, shall  be  appointed  by  the  council,  consisting  of  one 
master  and  one  workman,  who  shall  sit  at  such  times  as  shall  be 
appointed,  and  be  renewed  from  time  to  time  as  occasion  shall 
require ;  and  all  cases  or  questions  of  dispute  which  shall  be 
submitted  to  the  council  by  both  parties  shall,  in  the  first 
instance,  be  referred  to  the  said  committee  of  conciliation,  who 
shall  endeavor  to  reconcile  the  parties  in  difference.  When 
such  reconciliation  shall  not  be  effected,  the  matter  in  dispute 
shall  be  remitted  to  the  council,  to  be  disposed  of  as  a  con- 
tested matter  in  regular  course.'  " 

By  the  fourth  section  power  is  to  be  given  to  these  councils 
to  hear  and  determine  all  questions  of  dispute  and  difference 
between  masters  and  workmen,  as  set  forth  in  the  5th  George 
IV.,  cap.  96,  which  might  be  submitted  to  them  by  both  parties  ; 
and,  as  to  which,  the  council  is  to  have  all  the  authority  granted 
to  arbitrators  and  referees  by  the  before-mentioned  act.  The 
council  are  to  be  further  authorized  to  adjudicate  upon  and 
determine  any  other  case  of  dispute  or  difference  submitted  to 
them  by  mutual  consent ;  but  with  the  same  proviso  as  in  the 
act  of  George  IV.  against  fixing  future  prices.  Such  awards  to 
be  enforced  according  to  the  provisions  of  the  last-mentioned 
act.  This  bill  of  Lord  St.  Leonards  would  also  establish  a  com- 
mittee of  two  for  the  purpose  of  conciliation,  in  addition  to  the 
council  before  mentioned.  The  power  would  not  be  operative 
until  a  dispute  had  commenced  ;  and  then  the  two  conciliators, 
or  the  two  trade  members  of  the  quorum,  would  be  in  the  posi- 
tion of  ordinary  arbitrators,  and  the  independent  chairman  in 
that  of  the  umpire.  The  defect  in  the  system  of  Lord  St.  Leon- 
ards is  that  it  does  not  make  it  obligatory  to  settle  future  dis- 
putes by  the  means  provided  in  his  act.  His  lordship  had,  no 
doubt,  some  good  reason  for  confining  his  system  to  the  settle- 
ment of  existing  disputes ;  but  it  is  remarkable  that  the  general 
law  as  to  the  binding  effect  of  agreements  to  submit  future  dis- 
putes to  arbitration  has  been  finally  settled  by  a  most  able  judg- 
ment of  his  given  in  the  case  of  "  Dimsdale  vs.  Robertson  "  (2 
Jones  and  Latouche),  58,  given  when  his  lordship  was  Lord 
Chancellor  of  Ireland. 

The  last  act,  that  of  1872,  we  have  given  in  full  in  the 


52  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Appendix.  This  act  was  the  result,  in  some  measure,  of  the 
sentiment  in  England  in  favor  of  Mr.  Kettle's  plan.  It  is  to  be 
regretted  that  it  was  not  passed  as  drawn  up  by  Mr.  Kettle. 
This  act  gives  all  powers  consistent  with  freedom  of  contract 
for  the  establishment  of  permanent 'boards  of  arbitration,  with 
authority  to  fix  future  rates  of  wages,  and  power  to  enforce 
their  awards  by  legal  process. 

Notwithstanding  the  existence  of  these  laws,  T  was  unable  to 
learn  of  any  recent  cases  of  their  use,  if,  indeed,  they  have  ever 
been  used.  Moral  coercion,  in  case  of  any  attempt  to  repudiate 
the  awards,  and  what  Mr.  Kettle  so  happily  terms  "  that  aggre- 
gate honor  of  individuals,  which  our  French  neighbors  call 
'  esprit  du  corps^^  "  have  generally  been  sufficient  to  secure  the 
enforcement  of  an  award.  The  love  of  justice  and  fair  pla}^ 
which  has  led  the  parties  to  agree  to  submit  their  disputes  to 
arbitrators,  has  also  led  them  to  act  in  good  faith  when  the 
award  has  been  made.  Still  it  would  not  be  without  its  effect 
if  some  simple,  inexpensive  legal  method  were  provided  for 
enforcing  such  of  the  awards  of  arbitration  as  in  their  nature 
are  capable  of  such  enforcement.  I  am  aware  of  the  impossi- 
bility of  enforcing  an  award  that  relates  to  a  future  rate  of 
wages,  the  most  prolific  source  of  disputes.  In  the  very  nature 
of  the  award,  when  it  includes  working  rules  or  rates  of  wages, 
these  rules  or  the  contracts  for  hiring  must  be  subject,  so  far  as 
the  individual  is  concerned,  to  termination  on  short  notice  ;  and 
therefore  the  award  in  its  action  must  be  bounded  by  this 
notice  ;  but  it  seems  just  and  right  that  until  such  notice  has 
been  given,  and  the  contract  ended  in  accordance  with  its  terms, 
it  should  be  conformed  to,  or  penalties  provided  for  its  non- 
observance. 

There  is  another  obstacle  to  legal  arbitration.  An  employ^ 
cannot  be  compelled  to  work  unless  he  choose,  nor  a  manufac- 
turer to  run  at  a  loss.  The  advocates  of  the  Wolverhampton 
system  do  not  claim  nor  propose  that  this  shall  be  done ;  but 
they  wish  to  provide  that  one  party  shall  not,  on  a  moment's 
notice,  discharge  the  other,  nor  shall  the  latter  cease  work  with- 
out a  moment's  warning.  This  does  not  in  any  degree  detract 
from  the  voluntary  nature  of  arbitration.  It  simply  is  carrying 
out  the  evident  truth,  that,  whilst  one  remains  a  party  to  an 
agreement,  he  is  bound  to  abide  by  the  terms.  If  he  does  not 
like  the  terms,  his  remedy  is  to  free  himself  in  the  proper  way. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  53 

Legal  arbitration  in  the  sense  in  which  Mr.  Kettle  advocates  it 
only  proposes  to  secure  by  legal  means  the  performance  of  hon- 
orable obligations. 

SECTION  XIII. 

CONCLUSION. 

In  the  foregoing  pages  I  have  endeavored  to  give,  in  as  brief 
a  space  as  possible,  the  history  and  practical  workings  of  Indus- 
trial Arbitration  and  Conciliation.  My  inclination  and  the  im- 
portance of  the  subject  would  have  led  me  at  times  to  much 
fuller  details  and  a  more  complete  discussion  of  the  subject,  had 
I  not  rigidly  adhered  to  a  determination  to  include  this  report 
within  such  limits  as  would  secure  a  reasonable  probability  of 
its  being  read.  With  such  limitations,  it  has  been  impossible 
to  more  than  touch  upon  the  history  and  accomplishments  of 
arbitration  and  conciliation.  In  fact,  a  large  part  of  its  history, 
especially  that  which  relates  to  the  working  of  conciliation,  by 
which  ninety  per  cent  of  the  cases  are  settled,  is  of  such  a 
nature  that  its  details  cannot  be  given.  It  can  only  be  known 
by  its  results;  and  these  have  been  a  better  and  more  cordial 
feeling  between  employers  and  employed,  and  a  mutual  co- 
operation and  trust  that  promises  the  most  satisfactory  and 
speedy  solution  of  some  of  the  most  vital  questions  that  vex  in- 
dustrial society. 

I  have  not  forgotten  that  the  present  constitution  of  indus- 
trial society  is  not  for  all  time.  There  are  great  and  vital 
changes  that  must  take  place.  There  are,  even  at  the  present 
time,  important  re-adjustments  in  progress  in  the  relations  of 
capital  and  labor.  These  must  continue,  and  with  these  changes 
new  modes  and  new  expedients  must  be  adopted. 

While  this  is  true,  the  practical  question  for  us  is.  What,  in 
the  present  condition  of  the  relations  of  capital  and  labor,  is 
best  calculated  to  harmonize  those  relations,  and  give  to  each 
its  just  proportion  of  the  results  of  their  united  energies  ? 

I  believe  that  the  practice  of  arbitration  and  conciliation  will 
tend  to  these  ends.  As  a  result  of  the  fair  and  open  discussions 
of  the  boards,  knowledge  will  be  acquired,  the  views  of  each 
modify  those  of  the  other,  and  out  of  it,  and  as  a  result  of  it, 
will  come  such  relations  between  capital  and  labor  as  will  effect- 
ually put  an  end  to  industrial  conflict. 


54  INDUSTRIAL  CONCILIATION  AND  AEBITEATION. 

Of  the  great  value  of  arbitration  and  conciliation  as  means  of 
settling  trades'  disputes,  there  can  be  no  question.  That  it  is 
infinitely  to  be  preferred  to  the  barbarous  method  of  strikes  and 
lock-outs,  is  scarcely  a  subject  of  argument.  In  the  terse  lan- 
guage of  Mr.  George  Howell,  formerly  secretary  of  the  Trades 
^^nion  Congress,  "the  whole  question  lies  in  a  nutshell.  Is 
brute  force  better  than  reason?  If  it  be,  then  a  costermonger 
may  be  a  greater  personage  than  a  philosopher,  and  Tom  Sayers 
might  have  been  considered  superior  to  John  Stuart  Mill." 

I  do  not  claim  for  arbitration  that  it  is  a  wonder  worker.  It 
is  not  perfect.  It  is  used  by  men  that  are  very  human,  and  who, 
under  the  present  condition  of  things,  are  extremely  selfish. 
For  these  reasons  it  will  fail  to  accomplish  all  that  is  expected. 
Though  it  may  fail  at  times,  when  it  is  fairly  and  honestly  tried 
it  will  in  most  cases  succeed ;  and  under  its  action,  wherever 
established,  an  intelligent  co-operation  between  employers  and 
employed  will  be  effected,  and  steady  employment  secured  at 
those  rates  of  wages  which  the  industrial  conditions  of  a  com- 
petitive market  enable  capital  to  pay. 

As  before  stated,  differences  between  capital  and  labor  must 
constantly  arise.  They  are  here  now.  It  is  for  our  workmen 
and  manufacturers  to  say  how  these  differences  shall  be  settled, 
whether  by  reason  or  by  brute  force.  Decide  they  must,  and 
in  some  cases  soon.  The  solicitude  to  discover  some  more 
rational  way  of  settling  these  differences  than  by  the  barbarous 
methods  of  strikes  and  lock-outs  is  shared  equally  by  workmen 
and  employers,  and  probably  most  of  all  by  the  on-looking 
public.  While  this  end  may  be  the  immediate  object  of  the 
solicitude  of  these  classes,  underneath  it  lies  an  earnest  desire 
to  find  a  permanent,  honorable,  reasonable  solution  of  this  and 
other  phases  of  that  most  important  of  all  human  problems,  the 
labor  question.  We  are  greatly  in  the  dark  on  this  subject.  I 
believe  we  are  moving  toward  the  light.  Looking  back  a  hun- 
dred years,  we  can  see  the  gradual  brightening  of  what  was  then 
the  darkest  of  all  social  problems,  and  need  have  no  fears  of  the 
result.  It  may  be  delayed ;  but  reason  will  rule,  and  determine 
the  nature  of  the  relations  of  capital  and  labor.  There  are  cer- 
tain facts  that  we  may  refuse  to  acknowledge,  and,  refusing  to 
own,  may  go  on  in  the  old  way ;  but  the  new  way  of  reason  and 
a  respect  for  the  rights  of  each  other  will  win.  I  believe  that 
arbitration  and  conciliation  will  aid  in  bringing  about  the  rec- 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  55 

ognition  of  these  rights.  It  is  not  an  end  nor  a  solution  of  the 
problem.  It  is  on  the  way  to  the  end,  and  is  much  nearer  it 
than  a  strike  or  a  lock-out.  It  will  be  a  day  of  the  greatest 
promise,  when  in  our  State  we  shall  put  aside  our  preconceived 
prejudices  and  the  notions  of  the  past,  when  we  shall  realize 
that  something  higher  than  brute  force  has  come  into  the  affairs 
of  men  to  adjust  and  harmonize  them,  and  when,  acting  on  this 
belief,  we  shall  urge  forward  an  industrial  re-organization  on  the 
basis  of  reason  and  right.  There  can  be  no  nobler  or  more 
sacred  work  for  men  to  do. 


APPENDIX  A. 

BOARD  OF  ARBITRATION  AND  CONCILIATION  FOR  THE  HOSIERY 
AND  GLOVE  TRADE. 

Rules. 

1.  That  a  board  of  trade  be  formed,  to  be  styled  the  "Board 
of  Arbitration  and  Conciliation  for  the  Hosiery  and  Glove 
Branches." 

2.  That  the  object  of  the  said  board  shall  be  to  arbitrate  on 
any  questions  relating  to  wages  that  may  be  referred  to  it  from 
time  to  time  by  the  employers  or  operatives,  and  by  concilia- 
tory means  to  interpose  its  influence  to  put  an  end  to  any  dis- 
putes that  may  arise. 

3.  The  board  to  consist  of  eleven  manufacturers  and  eleven 
operatives.  The  operatives  to  be  elected  by  a  meeting  of  the 
respective  branches.  The  manufacturers  to  be  elected  by  a 
public  meeting  of  their  own  body.  The  whole  of  the  deputies 
to  serve  for  one  year,  and  to  be  eligible  for  re-election.  The 
new  council  to  be  elected  in  the  month  of  January,  in  each  year. 

4.  That  each  delegate  attend  the  board  with  full  powers  from 
his  own  branch,  and  that  the  decision  of  the  board  shall  be 
considered  binding  upon  the  branch  he  represents. 

5.  That  a  committee  of  inquiry,  consisting  of  four  members 
of  the  board,  shall  inquire  into  any  cases  referred  to  it  by  the 
secretaries.  Such  committee  to  use  its  influence  in  the  settle- 
ment of  disputes.  If  unable  amicably  to  adjust  the  business 
referred  to  it,  it  shall  be  remitted  to  the  board  for  settlement ; 
but  in  no  case  shall  the  committee  make  any  award.  The  com- 
mittee to  be  appointed  annually. 


56  INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 

6.  That  the  board  shall,  at  its  annual  meeting,  elect  a  presi- 
dent, vice-president,  and  two  secretaries,  who  shall  continue 
in  office  one  year,  and  be  eligible  for  re-election. 

7.  That  the  board  shall  meet  for  the  transaction  of  business 
once  a  quarter,  viz.,  the  first  Monday  in  January,  April,  July, 
and  October ;  but  on  a  requisition  to  the  president,  sigr^ed  by 
three  members  of  the  board,  specifying  the  nature  of  the  busi- 
ness to  be  transacted,  he  shall,  within  seven  days,  convene  a 
meeting  of  its  members.  The  circular  calling  such  meeting 
shall  specify  the  nature  of  the  business  for  consideration,  pro- 
vided that  such  business  has  first  been  submitted  to  the  com- 
mittee of  inquiry,  and  left  undecided  by  them. 

8.  That  all  complaints  submitted  to  the  board  for  their  in- 
vestigation be  embodied  in  writing,  stating,  as  clearly  as  possi- 
ble, the  nature  of  the  grievance  complained  of;  such  statement 
to  be  sent  at  least  one  week  prior  to  the  board  meeting. 

9.  That,  prior  to  any  advance  or  reduction  in  the  rate  of 
wages  being  considered  by  the  board,  a  month's  notice  shall  be 
given  in  writing  to  the  secretary,  that  such  change  is  desired. 

10.  That  the  president  shall  preside  over  the  meetings  of  the 
board,  and,  in  his  absence,  the  vice-president.  In  the  absence 
of  both  president  and  vice-president,  a  chairman  shall  be 
elected  by  a  majority  present.  The  chairman  to  have  a  vote, 
and,  in  case  of  members  being  equal,  the  chairman  to  have  the 
casting  vote. 

11.  That  any  expense  incurred  by  this  board  be  borne  equally 
by  the  operatives  and  employers. 

12.  That  no  alteration  or  addition  be  made  to  these  rules,  ex- 
cept at  a  quarterly  meeting,  or  a  special  meeting  convened  for 
the  purpose.  Notice  of  any  proposed  alteration  shall  be  given 
in  writing  one  month  previous  to  such  meetings. 

APPENDIX  B. 
RULES  OF  THE  WOLVERHAMPTON  BUILDING  TRADE. 

Rules  for  Regulating  the  Carpenters'  and  Joiners'*  Branch, 

We,  the  undersigned  [A  B],  umpire;  [C  D,  E  F,  and  four 
others],  arbitrators"  appointed  by  the  master  builders;  [G  H, 
I  J,  and  four  others],  arbitrators  appointed  by  the  opera- 
tive carpenters  and  joiners,  —  having  fully  and  fairly  discussed 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  57 


certain  alterations  in.  the  rules  proposed  on  behalf  of  the  masters 
and  men  respectively,  of  which  due  notice  had  been  given,  do 
hereby  certify  that  we  have,  by  unanimous  resolution,  agreed 
upon  the  following  rules,  to  come  into  operation  on  the  first  day 
of  May  next. 

Arbitration. 

Rule  1.  That  if  any  trade  dispute  shall  arise  between  mas- 
ter and  workman,  such  dispute  shall  be  settled  by  the  award  of 
[C  D,  E  F,  and  four  others],  on  the  part  of  the  master 
builders,  and  [G  H,  I  J,  and  four  others],  on  the  part  of  the 
operative  carpenters  and  joiners,  who  are  hereby  appointed 
trade  arbitrators,  or  by  a  majority  of  them  ;  or,  in  case  they  or 
a  majority  of  them  cannot  agree,  then  by  the  award  of  [A  B], 
who  is  hereby  appointed  umpire  ;  and  that  in  case  any  or  either 
of  the  masters'  arbitrators  shall  happen  to  die,  or  cease  to  carry 
on  business  in  the  town  of  Wolverhampton,  or  be  ill  and  unable 
to  attend  to  the  business  of  arbitration  during  the  continuance 
of  these  rules,  then  the  surviving  or  remaining  masters'  arbitra- 
tors shall  appoint  another  or  other  master  builder  or  builders 
then  carrying  on  business  in  the  town  of  Wolverhampton,  in 
the  place  of  him  or  them  who  shall  so  have  died  or  ceased  to 
carry  on  business,  or  become  incapable  of  acting ;  and  in  case 
any  or  either  of  the  workmen's  arbitrators  shall  happen  to  die, 
or  cease  to  work  as  a  carpenter  and  joiner  in  the  town  of  Wol- 
verhampton, or  become  ill  and  incapable  of  attending  to  the 
business  of  arbitration  during  the  continuance  of  these  rules, 
then  the  surviving  or  remaining  workmen's  arbitrators  shall 
appoint  other  or  another  carpenter  and  joiner,  then  working  in 
the  town  of  Wolverhampton,  in  the  place  of  him  or  them  who 
shall  have  died  or  ceased  to  work,  or  become  incapable  of  act- 
ing. And  in  case  either  or  any  of  the  masters  or  men  appointed 
arbitrators  shall  be  a  party  or  parties  to  the  dispute  to  be  de- 
cided, other  arbitrators  shall,  for  the  purpose  of  that  arbitration 
only,  be  appointed  in  manner  hereinbefore  provided  for  filling 
up  vacancies.  That,  upon  any  dispute  arising,  either  the  master 
or  workman  may  forthwith  give  notice  to  the  umpire  of  the 
same,  who  shall  thereupon  summon  the  arbitrators  to  meet  at 
some  convenient  time  and  place  within  seven  days,  for  the  pur- 
pose of  hearing  and  determining  the  said  dispute.  At  the  meet- 
ing so  to  be  held,  both  parties,  and  such  others  as  the  arbitrators 

8 


58  INDUSTRIAL  CONCILIATION  *AND  ARBITRATION. 

umpire  may  think  necessary,  shall  be  heard ;  and  both  parties 
shall  produce  before  the  arbitrators  and  umpire  such  documents 
in  their  possession  relating  to  the  dispute  as  they  or  either  of 
them  shall  require.  The  award  of  the  said  arbitrators,  or  a 
majority  of  them,  or,  in  case  they  or  a  majority  of  them  cannot 
agree,  then  the  award  of  the  umpire  shall  be  binding,  and  con- 
clusive upon  all  parties  to  the  dispute  arbitrated.  The  award 
shall  be  made  within  three  days  after  the  sitting,  or,  if  more 
than  one,  after  the  last  sitting,  of  the  arbitrators.  The  award 
shall  not  be  void  or  voidable  for  want  of  form  j  and  may  be 
referred  back  for  amendment  in  form  to  the  arbitrators  or  um- 
pire, as  the  case  may  be,  by  any  judge  or  magistrate.  No  pro- 
ceedings whatever  at  law  or  in  equity  shall  be  taken  against 
either  arbitrators  or  umpire,  or  any  of  them,  for  any  thing  done 
under  this  rule. 

And,  lastly,  that  the  arbitrations  hereinbefore  provided  are 
intended  between  masters  and  workmen  to  be,  and  for  all  in- 
tents and  purposes  shall  be,  taken  and  held  to  be  under  the 
provisions  of  Sect.  13  of  the  5th  of  George  IV.,  cap.  96. 

Conciliation. 

2.  That  in  case  any  trade  dispute  or  difference  of  a  private 
nature  shall  arise  between  any  individual  master  and  any  indi- 
vidual workman  or  workmen,  by  which  the  general  interests  of 
the  trade  are  not  directly  affected,  then  in  such  case,  before  pro- 
ceeding to  arbitration  under  the  last  rule,  the  master  shall 
nominate  one  of  the  hereinbefore  appointed  masters'  arbitrators, 
and  the  workman  or  workmen  one  of  the  hereinbefore  appointed 
workmen's  arbitrators,  who  shall,  as  soon  as  conveniently  may 
be,  meet  together,  and  endeavor,  if  possible,  to  arrange  such 
private  dispute  or  difference  without  proceeding  to  a  formal 
reference  ;  and,  in  case  they  cannot  so  arrange  such  difference 
to  the  mutual  satisfaction  of  both  contending  parties,  the  matter 
in  dispute  shall  be  determined  by  arbitration  under  Rule  1,  as 
though  no  such  meeting  for  conciliation  had  been  held. 

Society  and  Non-society  Men. 

3.  Neither  masters  nor  men  shall  interfere  with  any  man  on 
account  of  his  being  a  society  or  non-society  man.  The  society 
men  pledge  themselves  not  to  annoy,  nor  allow  annoyance  to, 
non-society  men. 


INDUSTRIAL  CONCILIATION  AND  ARBITEATION.  59 


blasters'  Conduct  of  Business. 

4.  Each  master  shall  have  power  to  conduct  his  own  business 
in  the  matter  of  the  employment  of  any  man  he  thinks  fit,  on 
any  work  he  considers  him  capable  of  doing ;  in  taking  appren- 
tices ;  in  using  machinery  and  implements ;  and  in  all  details  of 
the  management  of  his  business,  not  infringing  on  the  indiyid- 
ual  liberty  of  the  workman.  Provided  that,  on  any  job  where 
a  number  of  carpenters  and  joiners  are  employed,  their  instruc- 
tions shall  be  given  by  the  employer,  or,  in  his  absence,  by  the 
general  manager,  through  the  carpenter  and  joiner  appointed  to 
take  the  lead  of  the  job. 

Wages,  Payme.yit  by  the  Hour. 

5.  All  time  shall  be  reckoned  and  paid  for  by  the  hour,  at  the 
following  rates :  The  class  of  men  who  have  hitherto  been  paid 
five  pence  three  farthings  per  hour  shall  be  paid  sixpence  per 
hour,  and  other  classes  of  men  in  proportion  ;  but  men  working 
only  on  unprotected  buildings  shall  be  paid  one  halfpenny  per 
hour  additional  for  six  weeks  before  and  six  weeks  after  Christ- 
mas Day.  Provided  that  when  a  man  employed  on  unprotected 
buildings  has  the  option  of  making  up  his  full  time  by  working 
in  the  shop,  he  shall  be  paid  at  the  ordinary  rate  only,  it  being 
the  intention  of  both  parties  that  men  of  the  same  class  shall 
have  the  opportunity  of  earning  the  same  wages  in  each  week. 

Time  of  Work. 

6.  The  shops  and  works  shall  be  open  from  six  o'clock  in  the 
morning  till  half-past  five  o'clock  in  the  evening  for  the  first 
five  working,  days  in  the  week,  and  from  six  o'clock  in  the 
morning  till  four  in  the  afternoon  on  Saturday,  allowing  one  and 
an  half  hour  per  day  for  meals  ;  but  from  six  weeks  before  till 
six  weeks  after  Christmas  Day,  workmen  on  unprotected  build- 
ings, who  are  not  provided  with  work  in  the  shop  to  fill  up  their 
full  time,  shall  work  from  seven  o'clock  in  the  morning  till  five 
o'clock  in  the  evening  on  the  first  five  working  days  of  the 
week,  and  from  seven  o'clock  in  the  morning  till  four  o'clock  in 
the  afternoon  on  Saturday,  with  one  hour  per  day  allowed  for 
meals.  Provided  that  for  men  who  wish  to  be  paid  at  the  office 
on  Saturday,  between  one  and  two  o'clock,  under  the  next  rule, 
the  hour  of  ceasing  to  work  on  that  day  shall  be  one  o'clock 
instead  of  four. 


60  INDUSTRIAL  CONCILIATIOK  AND  ARBITRATION. 


Reckoning  and  Payment. 

7.  Time  and  wages  shall  be  reckoned  up  to  Friday  night  in 
each  week,  and  wages  shall  be  paid  at  the  pay  office,  at  the  shop, 
on  Saturday,  between  the  hours  of  one  and  two,  to  all  men  who 
require  a  half-holiday ;  the  men  requiring  payment  then  to  walk 
to  the  pay  office  in  their  own  time.  Other  men  will  be  paid 
either  at  the  pay  office,  at  the  shop,  or  upon  the  job,  at  four 
o'clock,  as  heretofore. 

Overtime, 

8.  All  time  made  at  the  request  of  the  master,  between 
eight  o'clock  in  the  evening  and  five  o'clock  in  the  morning, 
shall  be  paid  for  at  the  rate  of  ninepence  per  hour,  and  on  Sun- 
day shall  be  paid  for  at  one  shilling  per  hour. 

Distant  Work. 

9.  Walking  time  shall  be  paid  as  follows :  that  is  to  say,  if  the 
distance  of  the  work  or  job  be  within  two  miles  from  the  High 
Green,  Wolverhampton,  the  men  shall  walk  in  their  own  time. 
If  more  than  two  miles  from  that  place,  then  walking  time  shall 
be  allowed  at  the  rate  of  three  miles  per  hour  beyond  the  first 
mile  and  a  half.  The  men  to  walk  back  in  their  own  time,  ex- 
cept on  Saturdays,  when  the  wages  are  not  paid  on  the  job  or 
place  of  work.  Lodgings  to  be  paid  for  at  all  jobs  beyond  four 
miles  distance,  at  the  rate  of  two  shillings  per  week.  Railway 
fares  shall  be  matters  of  special  arrangement  between  master 
and  man. 

Notice. 

10.  One  working  day's  notice  shall. be  given  before  a  man 
leaves  an  employer,  or  before  a  master  discharges  a  man. 

Rules^  How  Long  in  Force^  and  How  and  When  to  he  Altered. 

11.  These  rules  shall  come  into  operation  on  the  first  day  of 
May  next,  and  shall  continue  in  force  for  one  year.  Should 
either  party  require  an  alteration  in  these  rules  at  the  end  of 
the  time  specified,  notice  shall  be  given  to  the  other  party  of 
such  required  alteration,  in  the  month  of  January  next.  If  no 
such  notice  shall  be  given,  then  these  rules  shall  continue  in 
force  until  the  first  of  May  in  the  next  year,  and  so  on  from  year 
to  year,  until  either  party  shall  give  notice  to  the  other,  in  the 


INDUSTRIAL  CONCILIATION  AND  ARBITKATION.  61 


month  of  January  in  any  year,  that  an  alteration  in  these  rules 
will  be  required  on  the  first  day  of  May  next  following  such 
notice. 

Printing^  Publishing,  and  Proving  these  Pules. 

12.  That  these  rules  shall  be  printed  and  posted  up  in  some 
conspicuous  place  in  each  of  the  master  builders'  workshops  in 
Wolverhampton ;  and  that  a  printed  copy  of  these  rules,  issued 
by  the  umpire,  shall  be  read  as  evidence  of  the  contract  and 
submission  to  arbitration,  between  any  master  builder  carrying 
on  business  in  the  municipal  borough  of  Wolverhampton,  and 
any  carpenter  and  joiner,  in  any  proceedings  to  enforce  any 
award  made  under  these  rules,  unless  a  special  contract  in  writ- 
ing shall  have  been  entered  into  between  the  parties. 

Dated  this  thirty-first  day  of  March,  1866. 

[^Signatures  of  Masters^  Arbitrators.'] 
'[Signatures  of  Meri's  Arbitrators.'] 
[Signature  of  Umpire.] 

APPENDIX  C. 

BOARD  OF  ARBITRATION  AND  CONCILIATION  FOR  THE  NORTH 
OF  ENGLAND  MANUFACTURED  IRON  TRADE. 

Rules. 

1.  The  title  of  the  board  shall  be  "  The  Board  of  Arbitra- 
tion and  Conciliation  for  the  Manufactured  Iron  Trade  of  the 
North  of  England." 

2.  The  object  of  the  said  board  shall  be  to  arbitrate  on 
wages,  or  any  other  matters  affecting  their  respective  interests, 
that  may  be  referred  to  it  from  time  to  time  by  the  employers 
or  operatives,  and,  by  conciliatory  means,  to  interpose  its  in- 
fluence to  prevent  disputes,  and  put  an  end  to  any  that  may 
arise. 

3.  The  board  shall  consist  of  one  employer  and  one  operative 
representative  from  each  works  joining  the  board.  Where  two 
or  more  works  belong  to  the  same  proprietors,  each  works  may 
claim  to  be  represented  at  the  board. 

4.  The  employers  shall  be  entitled  to  send  one  duly  accred- 
ited representative  from  each  works  to  each  meeting  of  the 
board. 


62  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


5.  The  operatives  of  each  works  shall  select  a  representative 
by  ballot  in  the  month  of  December  in  each  year :  the  name  of 
such  representative  and  of  the  works  he  represents  shall  be 
given  in  to  the  secretaries  on  or  before  the  1st  of  January  next 
ensuing. 

6.  The  operative  representatives  so  chosen  shall  continue  in 
office  for  the  calendar  year  immediately  following  their  election, 
and  shall  be  eligible  for  re-election. 

7.  If  any  operative  representative  die,  or  resign,  or  cease  to 
be  qualified  by  terminating  his  connection  with  the  works  he 
represents,  a  successor  shall  be  chosen  within  one  month,  in  the 
same  manner  as  is  provided  in  the  case  of  annual  elections. 

8.  Each  representative  shall  be  deemed  fully  authorized  to 
act  for  the  works  which  has  elected  him ;  and  the  decision  of  a 
majority  of  the  board,  or  of  its  referee,  shall  be  binding  upon 
the  employers  and  operatives  of  all  works  which  have  joined  the 
board. 

9.  At  the  meeting  of  the  board,  to  be  held  in  January  in 
each  year,  it  shall  elect  a  president  and  vice-president,  one  from 
the  employers  and  the  other  from  the  operatives,  also  a  deputy 
president  and  a  deputy  vice-president  in  like  manner,  and  two 
secretaries,  who  shall  continue  in  office  till  the  corresponding 
meeting  of  the  following  year,  but  shall  be  eligible  for  re-elec- 
tion. The  president  and  vice-president  shall  be  ex-officio  mem- 
bers of  all  committees. 

10.  At  the  same  meeting  of  the  board  a  standing  committee 
shall  be  appointed,  as  follows :  The  employers  shall  nominate 
ten  of  their  number  (not  more  than  five  of  whom  shall  be  sum- 
moned to  any  meeting  of  the  committee),  and  the  operatives 
five  of  their  number.  The  president  and  vice-president  shall 
be  also  ex-officio  members  of  the  committee. 

11.  All  questions  shall,  in  the  first  instance,  be  referred  to 
the  standing  committee,  who  shall  investigate  and  endeavor  to 
settle  the  matter  so  referred  to  it,  but  shall  have  no  power 
to  make  an  award,  unless  by  consent  of  the  parties.  In  the 
event  of  the  committee  being  unable  to  settle  any  question,  it 
shall,  as  early  as  possible,  be  referred  to  the  board. 

12.  The  president  shall  preside  over  all  meetings  of  the  board, 
and  in  his  absence  the  vice-president.  In  the  absence  of  both 
president  and  vice-president,  a  chairman  shall  be  elected  by  the 
meeting. 


rNDUSTKIAL  CONCILIATION  AND  ARBITRATION.  63 

13.  All  votes  shall  be  taken  at  the  board  by  show  of  hands, 
unless  any  member  calls  for  a  ballot.  The  chairman  and  vice- 
chairman  shall  not  be  entitled  to  vote,  but  the  works  for  which 
the  chairman  and  vice-chairman  respectively  were  elected  shall 
be  entitled  to  nominate  another  representative  in  each  case.  If 
at  any  meeting  of  the  board  the  employer  representative  or  the 
operative  representative  of  any  works  be  absent,  the  other  rep- 
resentative of  such  works  shall  not,  under  the  circumstances, 
be  entitled  to  vote. 

14.  In  case  of  an  equality  of  votes  at  the  board,  it  shall 
appoint  an  independent  referee,  whose  decision  shall  be  final  and 
binding ;  but,  whenever  such  equality  of  votes  arises  on  the 
choice  of  independent  referee,  the  original  question  shall  be 
referred  to  and  finally  decided  by  the  award  of  three  indifferent 
persons,  or  a  majority  of  them,  one  of  such  persons  to  be  named 
by  each  section  of  the  board,  and  the  third  by  the  two  persons 
so  named  by  the  board,  within  fourteen  days  of  such  meeting. 

15.  The  board  shall  meet  for  the  transaction  of  business  twice 
a  year,  in  January  and  July  ;  but  on  a  requisition  to  the  presi- 
dent, signed  by  five  members  of  the  board,  specifying  the  nature 
of  the  business  to  be  transacted,  and  stating  that  it  has  been 
submitted  to  the  standing  committee,  and  left  undecided  by 
them,  he  shall,  within  fourteen  days,  convene  a  meeting  of  the 
board.  The  circular  calling  such  meeting  shall  specify  the 
nature  of  the  business  for  consideration. 

16.  All  questions  requiring  investigation  shall  be  submitted  to 
the  standing  committee  or  to  the  board,  as  the  case  may  be,  in 
writing,  and  shall  be  supplemented  by  such  verbal  evidence  or 
explanation  as  they  may  think  needful. 

17.  No  subject  shall  be  brought  forward  at  any  meeting  of 
the  standing  committee  or  of  the  board,  unless  notice  thereof 
be  givpn  to  the  secretaries  seven  clear  days  before  the  meeting 
at  which  it  is  to  be  introduced. 

18.  The  standing  committee  shall  meet  for  the  transaction  of 
business  prior  to  the  half-yearly  meetings,  and  in  addition  as 
often  as  business  requires.  The  place  of  meeting  shall  be  ar- 
ranged between  the  president  and  secretaries,  in  default  of  any 
special  direction. 

19.  Any  expenses  incurred  by  this  board  shall  be  borne 
equally  by  the  employers  and  operatives ;  and  it  shall  be  the 
duiy  of  the  standing  committee  to  establish  the  most  conven- 


64  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


ient  arrangements  for  collecting  what  may  be  needed  to  meet 
such  expenses. 

20.  The  sum  of  ten  shillings  for  each  member  of  the  board 
or  standing  committee  shall  be  allowed  for  each  meeting  of  the 
board  or  standing  committee,  together  with  such  percentage 
addition  as  is  for  the  time  being  made  by  order  of  the  board  to 
the  standard  wages.  This  sum  shall  be  divided  equally  between 
the  employers  and  operatives,  and  shall  be  distributed  by  each 
side  in  proportion  to  the  attendances  of  each  member.  In  addi- 
tion each  member  shall  be  allowed  second-class  railway  fare  each 
way ;  and,  when  an  operative  member  is  engaged  on  the  night 
shift  following  the  day  on  which  a  meeting  is  held,  he  shall  be 
allowed  payment  for  a  second  shift. 

21.  If  any  works  desires  to  join  the  board  at  any  other  time 
than  is  contemplated  in  Rules  4  and  5,  such  desire  shall  be 
notified  to  the  secretaries,  and  by  them  to  the  standing  com- 
mittee, who  shall  thereupon  admit  such  works  to  membership, 
on  being  satisfied  that  representatives  have  been  chosen  in  the 
manner  prescribed  by  the  rules. 

22.  No  alteration  or  addition  shall  be  made  to  these  rules, 
except  at  the  first  meeting  of  the  board  to  be  held  in  January 
in  each  year ;  and  unless  notice  in  writing  of  the  proposed  alter- 
ation be  given  to  the  secretaries  at  least  one  calendar  month 
before  such  meeting.  The  notice  convening  the  annual  meeting 
to  state  fully  the  nature  of  any  alteration  that  may  be  proposed. 

By-Laws. 

Rule  5.  In  the  month  of  November  in  each  j^ear,  the  secre- 
taries shall  issue  a  notice  to  each  firm  connected  with  the  board 
requesting  them  to  elect  representatives  in  the  month  of  Decem- 
ber, and  shall  supply  them  with  the  requisite  forms. 

Rule  10.  The  committee  shall  have  power  to  fill  up  all 
vacancies  that  may  arise  during  the  quarter. 

Rule  11.  An  official  form  shall  be  supplied  to  each  repre- 
sentative, on  which  complaints  can  be  entered.  Either  secretary 
receiving  a  complaint  shall  be  required  to  forward  a  copy  of  the 
same  to  the  other  secretary,  and  the  complaint  shall  be  consid- 
ered as  officially  before  the  board  from  the  date  of  such  notice. 

Rule  17.  This  rule  to  be  interpreted  to  mean  that  no  case 
in  which  the  committee  are  called  upon  to  deal  finally  with  a 
complaint  from  any  member  of  the  board,  shall  be  taken  up. 


LNDUSTRIAL  CONCILIATION  AND  ARBITRATION.  65 

without  seven  days'  notice  lias  been  received ;  but  tins  not  to 
apply  to  routine  business,  or  to  such  preliminary  investigation 
of  complaints  as  may  be  necessary. 

Rule  19.  The  sum  of  M,  per  head,  per  quarter,  shall  be 
deducted  from  the  wages  of  each  operative  earning  2s.  6d.  per 
day  and  upwards  (in  case  he  does  not  object  in  writing  to  such 
deduction),  on  the  first  day  in  the  months  of  January,  April, 
July,  and  October.  Each  firm  shall  pay  an  amount  correspond- 
ing to  the  total  sum  deducted  from  the  workmen.  The  contri- 
butions shall  be  forwarded  on  official  forms,  to  be  supplied  by 
the  secretaries,  to  the  bankers  (the  National  Provincial  Bank 
of  England),  within  one  week  from  the  day  when  the  money  is 
deducted  from  the  operatives. 

Rule  20.  If  any  member  be  compelled  in  the  service  of  the 
board  to  attend  meetings  on  two  or  more  days  consecutively, 
the  sum  of  3s.  6d.  each  be  allowed  per  night.  This  is  not  to 
apply  to  any  members  living  in  the  place  where  the  meeting  is 
held.  Members  attending  meetings  on  any  day  except  Mon- 
days or  Saturdays,  and  being  that  week  employed  on  the  night 
turn,  to  be  paid  for  two  days  for  each  sitting. 

The  board  earnestly  invites  the  attention  of  all  who  belong 
to  it,  either  as  subscribers  or  as  members,  to  the  following  in- 
structions :  — 

If  any  subscriber  of  the  board  desires  to  have  its  assistance 
in  redressing  any  grievance,  he  must  explain  the  matter  to  the 
operative  representative  of  the  works  at  which  he  is  employed. 

The  operative  representative  must  question  the  complainant 
about  the  matter,  and  discourage  complaints  which  do  not 
appear  to  be  well  founded. 

If  there  seems  good  ground  for  complaint,  the  complainant 
and  the  operative  representative  must  take  a  suitable  oppor- 
tunity of  laying  the  matter  before  the  foreman  or  works'  man- 
ager or  head  of  the  concern  (according  to  what  may  be  the 
custom  of  the  particular  works).  An  official  form  on  which 
complaints  may  be  stated  can  be  obtained  from  the  secretaries. 

The  complaint  should  be  stated  in  a  way  that  implies  an 
expectation  that  it  will  be  fairly  and  fully  c'onsidered,  and  that 
what  is  right  will  be  done. 

In  most  cases  this  will  lead  to  a  settlement  without  the  mat- 
ter having  to  go  further. 

9 


66  INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 


If,  however,  an  agreement  cannot  be  come  to,  a  statement  of 
the  points  in  difference  must  be  drawn  out,  signed  by  the 
employer  and  the  operative  representative  (and,  if  possible,  by 
the  employer  also),  and  forwarded  to  the  secretaries  of  the 
board,  with  a  request  that  the  standing  committee  will  consider 
the  matter. 

It  will  be  the  duty  of  the  standing  committee  to  meet  for  this 
purpose  as  soon  after  the  expiration  of  seven  days  from  receipt 
of  the  notice  as  can  be  arranged. 

It  is  not,  however,  always  possible  to  avoid  some  delay  ;  and 
the  complainant  must  not  suppose  that  he  will  necessarily  lose 
any  thing  by  having  to  wait,  as  any  recommendation  of  the 
standing  committee  or  any  decision  of  the  board  may  be  made 
to  date  back  to  the  time  of  the  complaint  being  sent  in. 

Above  all,  the  board  would  impress  upon  its  subscribers  that 
there  must  be  no  strike  or  suspension  of  work.  The  main 
object  of  the  board  is  to  prevent  any  thing  of  this  sort ;  and,  if 
any  strike  or  suspension  of  work  takes  place,  the  board  will 
refuse  to  inquire  into  the  matter  in  dispute  till  work  is  resumed  ; 
and  the  facts  of  its  having  been  interrupted  will  be  taken  in 
account  on  considering  the  question. 

It  is  recommended  that  any  changes  in  modes  of  working 
requiring  alterations  in  the  hours  of  labor,  or  a  revision  of  the 
scale  of  payments,  should  be  made  matters  of  notice,  and,  as  far 
as  possible,  of  arrangement  beforehand,  so  as  to  avoid  needless 
subsequent  disputes  as  to  what  ought  to  be  paid. 

APPENDIX  D. 

BOARD  OF  ARBITRATION  AND  CONCILIATION  FOR  THE  LACE 

TRADE  FOR  1876. 

Mules,  as  adopted  at  the  Meeting  of  Delegates  held  at  the  Mechan- 
ics^ Hall,  Sept.  17,  1874'i  ci'i^d  amended  July  10,  1876. 

1.  That  a  board  of  trade  be  formed,  to  be  styled  the  "  Board 
of  Arbitration  and  Conciliation  for  the  Lace  Trade." 

2.  That  the  object  of  the  said  board  shall  be  to  arbitrate 
on  any  questions  that  may  be  referred  to  it,  from  time  to  time, 
by  the  joint  consent  of  employer  and  workman,  and,  by  concil- 
iatory means,  to  interpose  its  influence  to  put  an  end  to  any  dis- 
pute that  may  arise. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  67 

3.  This  board  to  consist  of  twelve  manufacturers  and  twelve 
operatives,  five  of  each  to  form  a  quorum.  The  manufacturers 
to  elect  six  levers,  three  curtain,  and  three  plain  net  representa- 
tives, and  the  operatives  six  levers,  three  curtain,  and  three 
plain  net  representatives,  each  to  be  chosen  by  their  respective 
associations.  The  whole  of  the  delegates  to  serve  for  one  year, 
and  to  be  eligible  for  re-election.  The  new  council  to  be  elected 
in  the  month  of  January  in  each  year.  That  wlien  a  special 
question  arises,  upon  which  the  members  of  the  board  have  not 
sufficient  information,  it  shall  be  competent  for  either  side  to 
introduce,  after  seven  days'  notice  to  the  secretaries,  not  more 
than  two  extra  delegates,  who  shall  give  information  and  enter 
into  discussion  upon  such  question  ;  but,  in  every  case,  only 
members  of  the  board  shall  vote.  The  above  alteration  shall 
also  apply  to  special  meetings  of  each  branch.  No  changes 
shall  be  made  in  the  extra  delegates  whilst  the  question  is  under 
discussion. 

4.  The  decision  of  the  board  shall  be  binding  on  the  parties 
to  any  dispute  submitted  by  them. 

5.  That  a  committee  of  inquiry  of  six  members  of  the  board, 
three  employers  and  three  workmen,  engaged  in  that  particular 
branch  in  which  the  dispute  arises,  shall  inquire  into  any  cases 
referred  to  it ;  such  committee  to  use  its  influence  in  the  settle- 
ment of  disputes.  If  unable,  amicably,  to  adjust  the  business 
referred  to  it,  it  shall  be  remitted  to  the  whole  of  the  members 
of  that  branch  upon  the  board,  and,  should  no  agreement  then 
be  arrived  at,  the  case  shall  be  submitted  to  a  full  board ;  but  in 
no  case  shall  the  committees  make  any  award.  The  committees 
to  be  appointed  annually  at  the  first  meeting  of  the  board. 

6.  That  the  board  shall,  at  its  first  meeting  in  each  year, 
elect  a  president,  vice-president,  treasurer,  referee,  and  two  sec- 
retaries, who  shall  continue  in  office  for  one  year,  and  be  eligi- 
ble for  re-election. 

7.  That  the  board  shall  meet  for  the  transaction  of  business 
once  a  quarter,  viz.,  the  second  Monday  in  January,  April, 
July,  and  October  ;  but  on  a  requisition  to  the  president,  signed 
by  three  members  of  the  board,  specifying  the  nature  of  the 
business  to  be  transacted,  he  shall,  within  seven  days,  convene  a 
meeting  of  its  members.  The  circular  calling  such  meeting 
shall  specify  the  nature  of  the  business  for  consideration,  pro- 


68  INDUSTRIAL  CONCILIATION  AND  ARBITKATION. 

vided  that  such  business  has  first  been  submitted  to  the  com- 
mittee of  inquiry,  and  left  undecided  by  them. 

8.  The  parties  to  any  dispute  remitted  to  the  board  shall,  if 
possible,  agree  to  a  joint  written  statement  of  their  case  ;  but,  if 
they  cannot  agree,  a  statement  in  writing  from  each  party  shall 
be  made,  and  in  either  case  forwarded  to  the  secretaries  within 
seven  days  of  the  board's  meeting. 

9.  That  the  president  shall  preside  over  the  meetings  of  the 
board,  and  in  his  absence  the  vice-president.  In  the  absence  of 
both  president  and  vice-president,  a  chairman  shall  be  elected 
by  the  majority  present.  The  chairman  to  have  but  one  vote, 
and,  in  case  of  numbers  being  equal,  appeal  shall  be  made  to  the 
referee. 

10.  That  the  decision  of  the  referee  shall  be  final,  and  imme- 
diately binding  on  both  sides. 

11.  That  when  at  any  meeting  of  the  board  the  number  of 
employers  and  workmen  is  unequal,  all  shall  have  the  right  of 
fully  entering  into  the  discussion  of  any  matters  brought  before 
them,  but  only  an  equal  number  of  each  shall  vote.  The  with- 
drawal of  the  members  of  whichever  body  may  be  in  excess,  to 
be  by  lot. 

12.  That  any  expenses  incurred  by  this  board  be  borne 
equally  by  the  operatives  and  employers,  and  the  accounts  to  be 
produced  and  passed  at  each  quarterly  meeting. 

13.  That  no  alteration  or  addition  be  made  to  these  rules 
except  at  a  quarterly  meeting,  or  a  special  meeting  convened 
for  the  purpose.  Any  member  of  the  board  intending  to  pro- 
pose an  alteration  or  addition  shall  furnish  the  'exact  terms 
thereof,  in  writing,  to  the  secretaries,  twenty-eight  days  before 
such  meeting ;  and  the  secretaries  shall  give  twenty-one  days' 
notice  of  the  same  to  each  member  of  the  board. 


IlfDUSTRIAL  CONCfLTATION  AND  ARBITRATION.  69 


APPENDIX  E. 

ARBITRATION  ACT  OF  1872. 

Masters  and  Workmen  (^Arbitration')  Act  (35  and  36  Victoria, 

Chap.  46). 

An  Act  to  make  further  provision  for  arbitration  between  masters  and  workmen. 

(jtb  August,  1872. 

Whereas,  By  the  Act  of  the  fifth  year  of  George  the  Fourth, 
chapter  ninety-six,  intituled  "  An  Act  to  consolidate  and  amend 
the  laws  relative  to  the  arbitration  of  disputes  between  masters 
and  workmen,"  hereinafter  referred  to  as  the  "principal  Act," 
provision  is  made  for  the  arbitration  in  a  mode  therein  pre- 
scribed of  certain  disputes  between  masters  and  workmen. 

And  whereas.  It  is  expedient  to  make  further  provisions  for 
arbitration  between  masters  and  workmen  : 

Be  it  enacted  by  the  Queen  s  most  Excellent  Majesty,  by  and 
with  the  advice  and  consent  of  the  Lords  Spiritual  and  Temporal, 
and  Commons,  in  this  present  Parliament  assembled,  and  by  the 
authority  of  the  same,  as  follows  : 

I.  The  following  provisions  shall  have  effect  with  reference 
to  agreements  under  this  Act. 

(1)  An  agreement  under  this  act  shall  either  designate  some 
board,  council,  persons  or  person  as  arbitrators  or  arbitrator,  or 
define  the  time  and  manner  of  appointment  of  arbitrators  or  an 
arbitrator ;  and  shall  designate  by  name,  or  by  description  of 
ofi&ce  or  otherwise,  some  person  to  be,  or  some  person  or  persons 
(other  than  the  arbitrators  or  arbitrator),  to  appoint  an  umpire 
in  case  of  disagreement  between  arbitrators. 

(2)  A  master  and  a  workman  shall  become  mutually  bound 
by  an  agreement  under  this  Act  (hereinafter  referred  to  as 
"the  agreement"),  upon  the  master  or  his  agent  giving  to  the 
workman,  and  the  workman  accepting,  a  printed  copy  of  the 
agreement :  Provided,  That  a  workman  may,  within  forty-eight 
hours  after  the  delivery  to  him  of  the  agreement,  give  notice  to 
the  master  or  his  agent  that  he  will  not  be  bound  by  the  agree- 
ment, and  thereupon  the  agreement  shall  be  of  no  effect  as  be- 
tween such  workman  and  the  master. 

(3)  When  a  master  and  workman  are  bound  by  the  agreement, 
they  shall  continue  so  bound  during  the  continuance  of  any 


70  INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 


contract  of  employment  and  service  which  is  in  force  between 
them  at  the  time  of  making  the  agreement,  or  in  contemplation 
of  which  the  agreement  is  made,  and  thereafter  so  long  as  they 
mutually  consent  from  time  to  time  to  continue  to  employ  and 
serve  without  having  rescinded  the  agreement.  Moreover,  the 
agreement  may  provide  that  any  number  of  days'  notice,  not 
exceeding  six,  of  an  intention  on  the  part  of  the  master  or 
workman  to  cease  to  employ  or  be  employed  shall  be  required, 
and  in  that  case  the  parties  to  the  agreement  shall  continue 
bound  by  it,  respectively,  until  the  expiration  of  the  required 
number  of  days  after  such  notice  has  been  given  by  either  of 
the  parties. 

(4)  The  agreement  may  provide  that  the  parties  to  it  shall, 
during  its  continuance,  be  bound  by  any  rules  contained  in  the 
agreement,  or  to  be  made  by  the  arbitrators,  arbitrator,  or 
umpire,  as  to  the  rates  of  wages  to  be  paid,  or  the  hour  or 
quantities  of  work  to  be  performed,  or  the  conditions  or  regula- 
tions under  which  work  is  to  be  done,  and  may  specify  penalties 
to  be  enforced  by  the  arbitrators,  arbitrator,  or  umpire,  for  the 
breach  of  any  such  rule. 

(5)  The  agreement  may  also  provide  that  in  case  any  of  the 
following  matters  arise  they  shall  be  determined  by  the  arbitra- 
tors or  arbitrator  :  viz., 

(a)  Any  such  disagreement  or  dispute  as  is  mentioned  in  the 
second  section  of  the  principal  Act ;  or, 

(Z>)  Any  question,  case,  or  matter  to  which  the  provisions  of 
the  Master  and  Servant  Act,  1867,  apply : 

And  thereupon,  in  case  any  such  matter  arises  between  the 
parties  while  they  are  bound  by  the  agreement,  the  arbitrators, 
arbitrator,  or  umpire  shall  have  jurisdiction  for  the  hearing  and 
determination  thereof ;  and  upon  their  or  his  hearing  and  deter- 
mining the  same  no  other  proceeding  shall  be  taken  before  any 
other  court  or  person  for  the  same  matter ;  but,  if  the  disagree- 
ment or  dispute  is  not  so  heard  and  determined  within  twenty- 
one  days  from  the  time  when  it  arose,  the  jurisdiction  of  the 
arbitrators,  arbitrator,  or  umpire  shall  cease,  unless  the  parties 
have,  since  the  arising  of  the  disagreement  or  dispute,  consented 
in  writing  that  it  shall  be  exclusively  determined  by  the  arbi- 
trators, arbitrator,  or  umpire. 

A  disagreement  or  dispute  shall  be  deemed  to  arise  at  the 
time  of  the  act  or  omission  to  which  it  relates. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  71 


(6)  The  arbitrators,  arbitrator,  or  umpire  may  hear  and  de- 
termine any  matter  referred  to  them  in  such  manner  as  they 
think  fit,  or  as  may  be  prescribed  by  the  agreement. 

(7)  The  agreement,  and  also  any  rules  made  by  the  arbitra- 
tors, arbitrator,  or  umpire  in  pursuance  of  its  provisions,  shall,  in 
all  proceedings,  as  well  before  them  as  in  any  court,  be  evidence 
of  the  terms  of  the  contract  of  employment  and  service  between 
the  parties  bound  by  the  agreement. 

(8)  The  agreement  shall  be  deemed  to  be  an  agreement 
within  the  meaning  of  the  thirteenth  section  of  the  principal 
Act,  for  all  the  purposes  of  that  Act. 

(9)  If  the  agreement  provides  for  the  production  or  exam- 
ination of  any  books,  documents,  or  accounts,  subject  or  not  to 
any  conditions  as  to  the  mode  of  their  production  or  examination, 
the  arbitrators,  arbitrator,  or  umpire,  may  require  the  produc- 
tion or  examination  (subject  to  any  such  conditions)  of  any 
such  books,  documents,  or  accounts  in  the  possession  or  control 
of  any  person  summoned  as  a  witness,  and  who  is  bound  by  the 
agreement ;  and  the  provisions  of  the  principal  Act  for  compel- 
ling the  attendance  and  submission  of  witnesses  shall  apply  for 
enforcing  such  production  or  examination. 

II.  This  Act  may  be  cited  as  "  The  Arbitration  (Masters  and 
Workmen)  Act,  1872." 

MEMORANDUM. 

The  Uses  of  the  Act. 

Briefly  stated,  the  uses  of  the  Act  are  three  :  viz.,  — 

1.  To  provide  the  most  simple  machinery  for  a  binding  sub- 
mission to  arbitration,  and  for  the  proceedings  therein. 

2.  To  extend  facilities  of  arbitration  to  questions  of  wages, 
hours,  and  other  conditions  of  labor,  and  also  to  all  the  numer- 
ous and  important  matters  which  may  otherwise  have  to  be 
determined  by  justices  under  the  provisions  of  the  "  Master 
and  Servant  Act,"  1867. 

3.  To  provide  for  submission  to  arbitration  of  future  disputes 
by  anticipation,  without  waiting  till  the  time  when  a  dispute 
has  actually  arisen,  and  the  parties  are  too  much  excited  to 
agree  upon  arbitrators. 


72  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Mode  of  putting  the  Act  in  Operation, 

1.  A  form  of  agreement  must  be  drawn  np  and  printed  either 
by  the  employer  or  by  the  workman.  Such  a  form  is  appended 
(No.  I.).  But  this  form  is  not  obligatory,  and  it  may  be  varied 
to  any  extent  not  inconsistent  with  the  provisions  of  the  Act. 

2.  When  the  form  of  agreement  is  settled  and  printed,  it  will 
become  binding  on  an  employer  and  a  workman,  reciprocally, 
upon  the  employer  giving  to  the  workman — and  the  workman 
accepting  —  a  printed  copy.  But  the  workman  has  forty-eight 
hours  to  consider  and  satisfy  himself  of  the  effect  of  the  agree- 
ment, and  if  within  that  time  lie  gives  a  written  or  verbal  notice 
to  the  employer  or  his  agent,  that  he  rejects  it,  he  will  not  be 
bound  by  it.  If,  after  accepting  the  copy,  he  does  not  give  such 
notice,  then  both  he  and  the  employer  will  be  bound  by  the 
agreement  during  the  agreed  term  of  employment  (whether 
that  term  be  a  day,  or  a  week,  or  a  j^ear),  and  no  longer. 
The  agreement,  however,  may  itself  provide  that  six  days' 
notice  shall  be  given  of  an  intention  to  terminate  the  employ- 
ment. And,  in  any  case,  upon  an  expiration  of  an  agreement, 
it  may  be  renewed  in  the  same  manner  as  before. 

3.  In  case  any  dispute,  of  a  kind  to  which  the  agreement 
relates,  arises  between  the  parties  bound  by  it  during  the  con- 
tinuance of  the  agreement,  the  dispute  will  be  heard  and  deter- 
mined ;  not  by  the  parties,  but  by  the  arbitrators  in  the  mode 
prescribed  by  the  agreement;  or,  if  no  mode  is  so  prescribed, 
then  at  their  discretion.  The  attendance  of  witnesses,,  and  the 
production  of  evidence,  may  be  enforced  in  the  manner  provided 
by  the  Arbitration  Act  of  1824  (5  George  IV.,  c.  96). 

4.  The  award  of  the  arbitrators  may  be  in  the  annexed  form 
(II.).  And  it  may  be  enforced  in  the  manner  provided  by  the 
Arbitration  Act,  1824  (5  George  IV.,  c.  96),  by  distress,  or  im- 
prisonment, and  otherwise,  or  it  may  be  enforced  by  plaint  in 
the  county  court. 

5.  An  analysis  is  appended  of  the  clauses  of  the  Arbitration 
Act,  1824,  which  will  be  applicable  for  the  purposes  of  this  Act. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  73 


FORMS  OF  AGREEMENT  AND  AWARD. 
L   FORM  OF  AGREEMENT. 

The  Arbitration  (^Masters  and  Workmen)  Act,  1872. 

A  B  [here  insert  name  or  usual  description  of  the  employer's 
firm  and  the  name  of  the  works]  and  C  D  [here  insert  the 
name  and  occupation  of  the  workman]. 

1.  The  arbitrators  shall  be  E  F  and  G  H  (or  an  arbitrator 
shall,  on  or  before  the  .  .  day  of  .  .  .  ,  18  .  ,  be  named  in  writ- 
ing by  H  I  on  the  part  of  the  employer,  or  by  J  K  on  the  part 
of  the  workman). 

2.  The  umpire,  in  case  the  arbitrators  are  equally  divided, 
shall  be  L  M  (or  shall  be  the  person  for  the  time  being  holding 
the  office  of  ...  or  shall  be  appointed  by  N  O). 

3.  In  case  a  person  by  whom  any  thing  is  to  be  done  under 
this  agreement  as  an  arbitrator  or  umpire,  or  as  a  person  ap- 
pointed to  nominate  any  arbitrator  or  umpire,  dies,  or  declines  to 
act,  or  becomes  incapable  of  acting,  or  is  interested  as  a  party 
or  otherwise  in  the  matter  referred  to  him,  a  person  shall  be 
appointed  in  writing  by  P  Q,  or,  if  P  Q  do  not  appoint  within 
three  days  after  request  in  writing  from  either  party  to  the 
agreement,  then  by  R,  S,  to  act  in  the  place  of  the  person  so 
dying,  declining,  or  becoming  incapable,  or  being  interested. 

4.  Six  days'  notice  shall  be  required  of  an  intention  on  the 
part  either  of  the  employer  or  of  the  workman  to  terminate  the 
contract  of  employment  and  service  in  respect  of  which  this 
agreement  is  made. 

5.  The  parties  to  this  agreement  agree  to  the  following  rules 
(or  to  such  rules  as  may  be  made  by  the  arbitrators  on  the  fol- 
lowing subjects) :  viz., — 

(a)  As  to  the  rate  of  wages  [here  insert  any  such  rule 
agreed  on], 

(5)  As  to  the  hours  and  quantity  of  work  to  be  performed 
[here  insert  any  such  rule  agreed  on]. 

(c)  As  to  the  conditions  or  regulations  under  which  work  is 
to  be  done  [here  insert  any  such  rule  agreed  on].  The  penal- 
ties for  the  breach  of  the  above  rules  shall  be  the  following 
[here  insert  the  penalties]. 

6.  The  following  disputes  arising  between  employer  and 


74  INDUSTRIAL  CONCILIATION  AND  ABBITEATION. 


workman  during  the  continuance  of  this  agreement  shall  be 
determined  by  arbitration  under  this  agreement:  viz., — 

(a)  Any  such  disagreement  or  dispute  as  is  mentioned  in 
the  second  section  of  the  Arbitration  Act,  1824  (5  George  IV.,  c. 
96),  except  [here  insert  a  description  of  any  such  disagreements 
or  disputes  which  it  is  intended  to  except]. 

(J)  Any  question,  case,  or  matter  to  which  the  provisions  of 
the  Master  and  Servant  Act,  1867,  apply,  except  [here  insert 
a  description  of  any  such  question,  case,  or  matter  which  it  is 
intended  to  except]. 

7.  The  arbitrators  or  umpire  shall  hear  any  matter  referred 
to  them  in  the  following  manner:  viz.,  [here  insert  any  regula- 
tions by  which  it  is  desired  to  govern  the  proceedings  of  the 
arbitrators  or  umpire,  e.  g.,  that  they  shall  decide  on  written 
statements  from  each  side,  or  that  they  shall  hear  oral  evi- 
dence]. 

8.  The  following  books,  documents,  and  accounts  shall,  on 
demand  by  the  arbitrators  or  umpire,  be  produced,  and  submit- 
ted for  examination,  subject  to  the  conditions  hereafter  men- 
tioned :  viz.,  — 

(a)  Books,  documents,  and  accounts  [here  insert  a  descrip- 
tion of  them,  or  any  such  books,  documents,  and  accounts 
as  the  arbitrator  or  umpire  think  fit  to  demand]. 

(6)  Conditions  [here  insert  any  condition  as  to  the  mode 
of  production  or  examination]. 

II.  FORM  OF  AWARD. 
The  Arbitration  (^Masters  and  Worhmen)  Act,  1872. 
Aivard. 

We,  A  B  and  C  D  [name  the  arbitrators  or  umpire],  the 
arbitrators  or  umpire  in  the  matter  in  dispute  between  [here 
state  the  names  of  complainant  and  defendant],  do  hereby 
adjudge  and  determine^  that  [here  set  forth  the  determination]. 
(Signed)  "  A  B. 

C  D. 

This  .  .  day  of  .  .  .  ,  18  .  . 

1  Note  e.  fir.  — That  A  B  left  his  employment  without  due  notice,  and  that  A  B 
shall  pay  to  C  D  the  sum  of  .  .  .  for  his  breach  of  contract;  or  that  C  D  dis- 
missed A  B  without  due  notice,  and  that  C  D  shall  pay  to  A  B  the  sum  of  .  .  . 
for  his  breach  of  contract. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  75 


Analysis  of  the  Applicable  Sections  of  the  Arbitration  Act,  182Jf' 
CS  George  IV.,  c.  96.) 

§  9.  Attendance  of  witnesses  by  a  justice  of  the  peace  by 
summons  or  commitment. 

§  23.  Acknowledgment  of  fulfilment  of  award  by  the  person 
in  whose  behalf  it  is  made. 

§  24-30.  Performance  of  award  may  be  enforced  by  distress 
or  imprisonment. 

§  31.  Costs  and  expense  to  be  settled  by  the  arbitrators. 

§  32.  Exemption  from  stamp  duty. 

§  30-34.  Protection  of  arbitrators,  etc.,  from  actions. 


76  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Paet  II. 


INDUSTRIAL  CONCILIATION  AND  AEBITRATION  IN  MASSACHUSETTS. 


The  facts  contained  in  this  part  were  collected  by  Mr.  John 
Carruthers,  an  agent  of  this  Bureau  in  1876,  and  are  repro- 
duced from  our  Eighth  Annual  Report. 

At  the  time  of  making  the  investigation  in  1876-77,  no  real 
arbitration  had  been  accomplished  in  this  State ;  nor  has  any 
board  been  established  since  that  time,  in  any  industry,  so  far  as 
we  have  been  able  to  learn.  A  few  attempts  to  secure  settle- 
ments of  difficulties  have  been  made,  notably  one  in  Fall  River 
in  1878.  Before  proceeding  to  inaugurate  a  strike,  the  spinners 
proposed  to  submit  the  matter  in  dispute  to  a  board  of  arbitra- 
tion; but  their  proposition  was  summarily  rejected  by  the  man- 
ufacturers, who,  however,  gave  their  reasons  for  such  rejection.^ 

The  following  account  of  the  efforts  which  have  been  made 
towards  the  amicable  settlement  of  some  of  the  labor  disputes 
which  have  arisen  in  the  boot  and  shoe  industry  at  Lynn,  in 
this  Commonwealth,  is  interesting  and  profitable,  inasmuch  as 
it  shows  some  of  the  obstacles  encountered  in  attempts  to  intro- 
duce a  system  of  arbitration. 

In  the  collection  of  facts  relating  to  the  subject  of  arbitration 
in  Lynn  between  the  shoe  manufacturers  and  their  workmen, 
one  of  the  chief  difficulties  has  been,  that  scarcely  any  record 
of  their  doings  has  been  kept  by  either  party.  Indeed,  most  of 
the  agreements  between  employers  and  their  employes  seem  to 
have  been  verbal ;  and,  though  in  some  cases  written  compacts 
have  been  made  and  signed  by  both  parties,  but  few  have  been 
preserved,  and  these  only  show  the  results  reached. 

Many  of  the  shoe  manufacturers  can  recollect,  in  a  general 
way,  that  at  various  times  they  have  had  disputes  and  difficul- 
ties about  prices  with  their  workmen ;  but  as  to  the  questions 
involved,  or  how  finally  settled,  they  have  now  very  vague  im- 

1  See  Eleventh  Report  of  Bureau  of  Statistics,  p.  54. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  77 

pressions.  Therefore  the  statements  herein  made  are  fragment- 
ary, being  gathered  by  repeated  personal  interviews  with  such 
manufacturers  and  workmen  as,  from  their  position,  were  prom- 
inent and  active  participants  in  the  various  troubles  that  have 
arisen  during  the  last  seven  or  eight  years  in  that  city.  It  is 
pleasant  to  be  able  to  say,  that,  in  making  the  necessary  inr 
quiries,  only  the  most  courteous  treatment  has  been  received 
from  those  appealed  to  for  information;  there  is  also  every 
reason  to  believe  that  the  statements  made  have  been  truthful 
and  correct,  according  to  the  best  recollections  of  the  persons 
questioned.  As  any  account  of  arbitration  in  Lynn  must  ne- 
cessarily be  on  one  side  a  part  of  the  history  of  the  Order  of  St. 
Crispin,  some  facts  with  regard  to  that  organization  and  its 
methods  seem  indispensable  to  a  proper  presentation  of  the  sub- 
ject, and  required  at  the  very  outset. 

Some  time  in  the  year  1864,  Newell  Daniels,  then  living  in  the 
town  of  Milford,  Mass.,  conceived  the  idea  of  organizing  the 
shoemakers  of  that  place  on  the  plan  of  not  allowing  any  one  to 
teach  the  trade  to  new  hands  without  first  obtaining  the  con- 
sent of  the  organization.  He  went  so  far  as  to  draught  a 
constitution,  and,  with  Stephen  Onion  and  Elba  Underwood, 
took  some  steps  toward  forming  a  boot-treers'  society  upon  that 
plan.  Before  the  preliminary  arrangements  were  completed, 
however,  Mr.  Daniels  left  Massachusetts,  settled  in  the  West, 
and  for  the  time  being  the  matter  dropped. 

About  two  years  afterwards,  Mr.  Daniels,  with  some  others, 
succeeded  in  organizing  in  the  city  of  Milwaukee,  Wis.,  a 
society  of  shoemakers,  comprising  all  who  had  worked  at  any 
branch  of  the  shoe  trade  for  the  space  of  one  year,  with  the 
restriction  that  no  member  should  teach  his  trade  to  any  one 
unless  by  consent  of  the  organization.  The  constitution  written 
by  Mr.  Daniels  was  adopted;  and  a  committee,  consisting  of 
W.  C.  Haynes,  F.  W.  Wallace,  and  Henry  Palmer,  prepared  a 
secret  ritual,  which  at  the  next  meeting  was  adopted  by  the  or- 
ganization. F.  W.  Wallace  gave  the  new  society  its  name, — 
The  Knights  of  St.  Crispin. 

They  soon  afterwards  engaged  a  hall  as  a  place  of  meeting, 
and  on  the  1st  of  March,  1867,  in  the  city  of  Milwaukee,  estab- 
lished the  first  lodge  of  the  order.  Very  shortly  thereafter  the 
German  Custom  Shoemakers'  Union  of  that  city  adopted  the  plan 
and  principles  of  the  order,  and  founded  a  second  lodge.  Both 


78  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


lodges  increased  very  rapidly  in  numbers  and  influence,  and 
soon  commenced  active  exertions  to  introduce  the  order  in  the 
Eastern  States,  and,  finally,  to  form  a  national  organization. 

Circulars  setting  forth  the  plan  and  principles  of  the  order 
were  prepared,  and  sent  to  all  parts  of  the  country  where  it  was 
known  that  shoes  were  manufactured.  By  these  means  Cris- 
pinism  was  introduced  into  Eastern  Massachusetts,  where  it 
spread  with  great  rapidity  through  all  the  shoe  towns. 

On  the  3d  of  March,  1868,  the  first  lodge  was  formed  in 
Lynn,  —  Unity  Lodge,  No.  32,  —  and  in  less  than  a  year  two 
others  were  added,  the  three  having  a  membership  of  about 
five  thousand.  On  the  23d  of  April,  1869,  a  general  conven- 
tion of  the  order  was  held  in  Worcester,  and  a  preamble  and 
constitution  for  the  International  Grand  Lodge  adopted. 

The  effects  of  the  revolution,  through  which,  as  is  well  known, 
the  entire  shoe  business  was  at  that  time  gradually  passing, 
were  nowhere  more  felt  than  in  Lynn.  The  complete  and  final 
change  of  methods  brought  about  by  the  introduction  of  steam 
power  and  labor-saving  machinery,  and  the  consequent  sub- 
division of  labor  whereby  production  was  greatly  increased,  and 
cost  reduced,  the  employment  of  unskilled  labor  being  allowed 
to  an  extent  before  impracticable,  were  of  course  disastrous  to 
small  manufacturers,  whose  business  now  began  to  be  absorbed 
in  larger  firms. 

The  small-shop  system  was  mostly  abandoned,  and  the  large- 
factory  system  adopted  in  its  place.  The  Lynn  shoemaker, 
hitherto  more  or  less  independent  in  the  management  of  his 
business,  began  to  sink  into  the  mere  operative ;  and  in  place  of 
making  a  shoe  throughout,  as  formerly,  was  obliged  to  work 
continuously  and  monotonously  at  one  or  another  of  the  thirty 
or  forty  branches  into  which  the  industry,  under  the  new  sys- 
tem, was  divided.  He  thus  became  a  cutter,  a  laster,  a  heeler, 
a  beater-out,  etc.,  or  was  sent  to  run  a  McKay  sewing  machine, 
a  skiving  machine,  a  pegging  machine,  etc.,  in  many  of  which 
labors  the  skilled  shoemaker  found  that  the  knowledge  and  ex- 
perience gained  by  years  of  practice  gave  him  little  advantage 
over  the  green  hand. 

The  natural  result  of  this  state  of  things  was  to  give  to  the 
large  manufacturers,  who  could  command  the  necessary  capital, 
a  manifest  advantage  over  those  of  smaller  means,  who  were 
still  struggling  along  in  the  business.    This  is,  no  doubt,  one  of 


INDUSTRIAL  CONCILIATION.  AND  ARBITRATION.  79 


the  reasons  why  the  small  manufacturers  looked  with  more  or 
less  favor  on  the  combinations  of  workingmen,  and  in  par- 
ticular on  their  efforts,  "by  means  of  the  Crispin  organization,  to 
keep  up  the  rate  of  wages  ;  for  there  is  every  reason  to  believe 
that  these  employers  sympathized  to  some  extent  with  the  work- 
ingmen, and  that  it  was  owing  largely  to  their  friendly  support 
and  encouragement  that  the  Crispin  organization  attained  to 
such  power  and  wielded  so  much  influence  during  the  years 
1868  and  1869.  It  was  a  power  they  might  have  continued  to 
retain,  to  a  great  extent,  had  the  wise  counsels  of  some  of  their 
members  prevailefl  in  the  lodge-room,  and  certain  provisions  of 
the  constitution  been  altered  or  repealed ;  as  it  is  now  generally 
conceded,  even  by  members  of  the  order,  that  at  that  time  some 
of  their  rules  were  arbitrary,  and  unjustly  interfered  with  the 
rights  of  employers. 

In  the  constitution  for  subordinate  lodges  which  was  adopted 
by  the  International  Grand  Lodge,  April  23,  1869,  and  which 
was  binding  on  the  order  everywhere,  were  some  provisions 
which  bore  injuriously  upon  the  rights  of  manufacturers,  or,  at 
all  events,  left  their  interests  subject  to  the  caprice  of  tempo- 
rary majorities  in  the  lodge-room. 

The  following  is  from  a  printed  copy  :  — 

"article  X. — NEW  HELP. 

"No  member  of  this  order  shall  teach,  or  aid  in  teaching,  any  part  or 
parts  of  boot  or  shoe  making,  unless  this  lodge  shall  give  permission  by  a 
three-fourths  vote  of  those  present  and  voting  thereon,  when  such  permission 
is  first  asked  :  provided^  this  article  shall  not  be  so  construed  as  to  prevent  a 
father  from  teaching  his  own  son;  provided^  also,  that  this  article  shall  not 
be  so  construed  as  to  hinder  any  member  of  this  organization  from  learning 
any  or  all  parts  of  the  trade." 

The  following  extract  is  taken  from  the  constitution  of 
the  International  Grand  Lodge,  adopted  in  Worcester,  April, 
1869:  — 

"  ARTICLE  XIV.  —  GRIEVANCES. 

"  Section  1.  Grievances  shall  consist  of,  first ^  being  discharged  for 
refusing  to  teach  new  help ;  second^  being  discharged  for  belonging  to  the 
Crispin  organization ;  thirds  being  discharged  for  being  conspicuous  in  organ- 
izing new  lodges  of  this  order,  or  advocating  its  principles. 

"Sect.  2.  Whenever  a  grievance  is  supposed  to  exist  in  any  lodge  of 
this  organization,  notice  shall  be  sent  by  the  said  lodge  to  the  two  nearest 
lodges  of  the  order,  whose  duty  it  shall  be,  when  notification  is  received,  to 


80 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


appoint  one  delegate  from  each  lodge,  which  delegates  shall,  in  connection 
with  one  appointed  from  the  lodge  complaining,  form  an  investigating  com- 
mittee. 

"  Sect.  3.  It  shall  be  the  duty  of  said  committee  to  listen  to  the  evi- 
dence on  both  sides  of  the  case,  and  endeavor  to  arrange  the  matter  in  dis- 
pute. If  said  matter  cannot  be  arranged  satisfactorily,  it  shall  be  referred 
to  the  State  or  Province  Grand  Lodge,  which  shall  decide  upon  the  matter, 
subject  to  appeal  to  the  International  Grand  Lodge." 

The  committees  appointed  under  Sect.  2  of  the  preceding 
article,  copied  from  the  International  Grand  Lodge  constitution, 
were  regarded  by  Crispins  as  arbitration  committees.  Members 
of  these  committees  declare  that,  in  the  settlement  of  all  griev- 
ances, they  were  always  willing  not  only  to  listen  to  the  em- 
ployers' side  of  the  question,  but  took  special  pains  to  get  that 
side  of  the  case,  even  when  employers  refused  to  treat  with 
tliem  or  in  any  way  recognize  their  authority. 

The  following  extract,  taken  from  the  special  laws,  will  serve 
to  show  how  grievances  were  brought  before  the  lodge  :  — 

"  ARTICLE  I. 

"  Section  1.  It  shall  be  the  duty  of  members  of  the  order  employed  by 
the  same  firm  to  organize  by  the  choice  of  one  of  their  number  as  director. 

"  Sect.  2.  Whenever  any  cause  for  trouble  or  grievance  is  supposed  to 
exist  in  a  shop  between  the  employer  and  members  of  the  order,  it  shall  be 
the  duty  of  the  director  to  ascertain  the  facts  of  the  same  ;  when,  if  the 
matter  cannot  be  adjusted  satisfactorily  to  the  parties  interested,  he  shall,  by 
majority  vote  of  the  workers  on  the  part  or  parts  in  which  the  trouble  occurs, 
refer  the  case  to  the  lodge. 

"  article  II. 

"  Section  1.  The  director  of  each  shop  shall  collect  the  dues  of  all  mem- 
bers working  in  his  shop,  etc. 

"  Sect.  2.  When  a  member  working  in  a  shop  is  six  months  in  arrears 
for  dues,  the  members  in  good  standing  shall  demand  that  he  become  square 
on  the  books  of  his  lodge,  when,  if  he  refuses,  the  director  shall  require  of 
the  foreman  or  employer  the  discharge  of  such  delinquent :  such  request  not 
being  complied  with,  the  director  shall  immediately  refer  the  case  to  the 
lodge. 

"  article  III. 

Section  1.  Every  member  taking  a  job  in  a  new  shop  shall,  upon  enter- 
ing, inquire  for  the  director,  and  shall  deliver  up  for  inspection  his  paid-up 
card  or  director's  receipt ;  and,  any  member  evading  or  refusing  to  comply 
with  the  provisions  of  this  special  law,  the  director  shall  proceed  as  laid 
down  in  Art.  II.,  Sect.  2,  of  these  special  laws.  All  directors  and  members 
of  the  order  are  hereby  instructed  and  empowered  to  attend  to  the  rigid 
enforcement  of  this  article." 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  81 

Many  of  the  most  intelligent  Crispins  state  that  they  always 
believed  some  of  these  rules  to  be  unjust  and  arbitrary,  and  that 
the  order,  by  their  enforcement,  was  attempting  to  deal  with 
matters  not  within  its  proper  province  ;  that  they  had  often 
urged  their  repeal,  giving  it  as  their  opinion,  in  the  course  of 
discussion  in  tlie  lodge-room,  where  these  matters  came  up,  that 
employers  were  only  submissive  to  such  restrictions  to  save 
themselves  from  loss,  and  were  determined  to  free  themselves  on 
the  first  opportunity  from  restraints  under  which  they  were 
ever}^  day  becoming  more  and  more  restive. 

Manufacturers  of  the  smaller  class,  as  we  have  before  re- 
marked, express  themselves,  for  the  most  part,  as  having  been 
favorable  to  the  order  on  its  first  establishment.  They  think  it 
might  have  been  made  a  means  of  protection  to  their  interests, 
as  well  as  those  of  the  workmen.  But  they  say  that,  in  the  lat- 
ter part  of  the  year  1868  and  during  a  portion  of  1869,  when 
the  organization  had  almost  full  sway,  the  Crispins  became 
exacting,  presumptuous,  and  insolent  in  their  demands  upon 
employers,  often  interfering  with  matters  they  did  not  under- 
stand, and  which,  at  any  rate,  were  not  their  concern ;  that,  by 
the  operation  of  the  special  laws,  manufacturers  were  subject  to 
loss  and  continual  annoyance  ;  that  they  could  not  discharge  a 
man  for  any  reason,  but  he  was  almost  sure  to  make  complaint 
to  his  lodge,  calling  it  a  grievance,  and  asking  for  a  committee 
of  arbitration ;  that  there  were  many  instances  where  they  felt 
such  committees  had  not  treated  manufacturers  with  even  a 
shadow  of  justice  ;  that  it  sometimes  happened  that  an  employer 
had  reasons  for  his  action,  which  he  was  not  willing  or  even 
justified  in  unfolding  to  the  committee  ;  that,  in  all  such  cases,  the 
committees  were  apt  to  be  influenced  by  the  most  narrow  views, 
and  almost  certain  to  decide  against  the  employer ;  and  that, 
even  when  the  matter  was  fairly  investigated  and  fairly  reported 
to  the  lodge,  it  was  always  easy  for  a  few  demagogues  or  a 
small  faction,  by  specious  talk,  to  carry  any  vote  they  desired, 
sometimes  ordering  manufacturers  to  take  men  back  into  their 
employment  whom  they  did  not  want,  and  sometimes  to  dis- 
charge men  they  needed  and  were  anxious  to  keep,  and  who,  on 
their  part,  were  contented  and  willing  to  stay. 

Manufacturers  who  are  conducting  a  large  business,  and  em- 
ploy many  hands,  express  themselves  as  having  always  been 
opposed  to  Crispinism,  and  indignant  at  its  claims.  They  have 
11 


82  INDUSTEIAL  CONCILIATION  AND  AKBITRATION. 

no  objection  to  combinations  of  workingmen  to  keep  up  the  rate 
of  wages,  in  any  fair  and  legitimate  way ;  but,  they  say,  "  These 
men  assumed  to  control  our  whole  business.  We  claim  the 
right  to  employ  any  who  are  willing  to  work  for  us,  for  as  long 
as  we  please,  and  to  discharge  them  when  we  please,  without 
giving  outsiders  any  reason."  They  further  say  that  no  dis- 
putes were  ever  properly  settled  by  arbitration  in  the  lodge- 
room  or  elsewhere ;  that,  in  any  disagreement  with  their  own 
workmen,  they  felt  that  matters  could  have  been  much  more 
easily  arranged  in  the  shop  than  by  men  outside,  who  could 
have  little  knowledge  of  the  points  at  issue,  and,  perhaps,  no 
regard  for  the  various  interests  involved ;  that  Crispin  rule  had 
been  of  great  injury  to  the  shoe  business  in  Lynn;  that,  under 
its  influence,  the  workman  had  given  up  his  independence ;  he 
had  ceased  to  make  his  own  bargains,  and  might  at  any  time  be 
obliged  to  leave  a  profitable  situation  at  the  dictation  of  his 
lodge,  and  without  respect  to  his  interest  or  inclination  ;  that, 
under  the  operation  of  Crispin  interference,  manufacturers  had 
been  afraid  to  make  contracts  or  take  heavy  orders  for  goods, 
having  no  certainty  that  they  could  control  their  own  business, 
and  that,  in  consequence,  many  of  the  orders  of  1869,  which 
would  otherwise  have  been  filled  in  Lynn,  were  taken  elsewhere  ; 
that  at  that  time  some  of  the  large  firms  began  to  establish  shoe- 
shops  in  other  places.  Factories  were  opened  in  Pittsfield, 
N.  H.,  where  the  proprietors  felt  themselves  safe  from  the  effects 
of  Crispin  authority,  and  could  command  the  advantages  of 
cheap  rents  and  cheap  labor.  In  consequence,  a  large  part  of 
the  work  was  done  out  of  the  city,  which  in  other  years  had 
been  retained  there ;  for  there  was  so  much  sharp  competition 
among  manufacturers,  that  each  was  on  the  watch  continually 
to  gain,  if  possible,  any  advantage  over  others  :  thus,  though  the 
workmen  did  receive  more  for  their  labor  while  at  work,  there 
was  so  much  less  work  done  in  Lynn,  that  it  is  believed  they 
really  earned  less  money  than  they  would  have  done  had  there 
been  no  organization.  And  they  further  state  that  during  the 
year  1869,  though  there  was  no  outbreak  of  a  public  nature,  nor 
any  mention  of  troubles  by  the  press,  yet  the  relations  between 
the  employers  and  the  operatives  were  full  of  distrust  and  ill- 
feeling  on  both  sides. 

The  records  of  the  Crispin  lodges  seem  to  confirm  the  latter 
statement,  as  they  show  many  cases  of  difficulty  and  trouble  in 


INDUSTRIAL  CONCILIATION  AND  ARBITEATION. 


83 


the  shops  about  that  time.  A  manufacturer,  at  that  time  one 
of  the  largest  in  Lynn,  states  that  he  had  but  little  trouble  with 
his  workmen  on  any  occasion,  and  that  most  of  the  difficulties 
in  which  he  became  involved  arose  from  his  taking  part  with 
other  firms  ;  that  during  the  year  1869  he  had  much  more 
respect  for  the  Crispins  than  for  the  employers,  as  the  former 
held  together  and  stood  firmly  to  their  rules,  arbitrary  and  un- 
just though,  in  his  opinion,  they  were:  whereas  manufacturers 
were  so  jealous  of  each  other,  that  they  could  unite  in  nothing, 
but,  on  the  contrary,  were  continually  seeking  to  overreach  or 
undermine  each  other.  Further,  he  says  Crispinism  did  not 
affect  his  business  much,  as  he  only  manufactured  first  class 
work,  and  always  paid  the  very  highest  price  for  labor.  But  he 
was  opposed  to  it  from  principle,  and,  if  he  could  have  had  other 
employers  see  as  he  did,  it  could  never  have  gained  such  power 
in  Lynn,  and  might  at  any  time  have  been  broken  up  by  united 
action.. 

The  following  statement  embodies  the  views  and  opinions  of 
many  of  the  leading  shoe  manufacturers  of  Lynn,  as  gathered 
from  time  to  time  by  personal  interviews  and  conversations 
with  them  on  this  subject. 

About  the  spring  of  1870,  many  manufacturers,  finding  it 
impossible  to  prosecute  their  business  with  any  certainty  of  suc- 
cess, under  the  vexatious,  unjust,  and  arrogant  demands  of  the 
Crispin  organization,  determined  to  endeavor  by  concert  of 
action  to  find  some  means  through  which  they  might  free  them- 
selves. In  this  they  professed  to  be  influenced  not  alone  by 
motives  of  self-interest,  but  by  a  sincere  regard  for  the  best 
interests  and  welfare  of  their  workmen.  They  saw  very  clearly 
that  unless  something  was  done,  trade  would  leave  the  city,  as 
no  manufacturer  felt  safe  in  taking  orders  for  goods,  or  entering 
into  contracts  with  dealers  in  boots  and  shoes.  While  these 
matters  were  under  consideration,  and  before  any  plans  had 
been  matured,  one  of  the  most  prominent  manufacturers  in  the 
city,  without  consultation,  and  almost  entirely  on  his  own 
responsibility,  by  means  of  one  of  his  workmen  got  himself 
invited  into  a  meeting  of  one  of  the  Crispin  lodges,  and  there 
and  then  made  a  speech,  in  which  he  commended  their  organi- 
zation and  its  principles.  Deploring  the  misunderstanding 
between  employer  and  employ^,  he  pledged  his  word,  that,  if 
they  would  appoint  a  committee  of  five  of  their  number,  he 


84  INDUSTRIAL  CONCILIATION  AND  AKBITEATION. 


would  see  that  a  like  number  of  manufacturers  were  appointed 
to  meet  with  them,  and  talk  over  matters  in  an  amicable  man- 
ner; so  that,  if  possible,  some  agreement  might  be  reached 
which  would  be  mutually  satisfactory.  In  taking  this  unauthor- 
ized step,  this  gentleman  was  regarded  by  the  other  manufac- 
turers as  having  betrayed  their  cause.  His  action  excited  con- 
siderable indignation  among  them,  and  the  committee  of  five 
who  finally  met  with  the  Crispin  committee  to  arrange  a  scale 
of  prices  were  self-appointed ;  but  being  all  of  them  prominent 
men  in  the  business,  and  large  employers,  their  influence  was 
such  as  to  very  much  strengthen  and  encourage  the  Crispin 
organization.  The  manufacturers  felt  that  their  interests  had 
been  betrayed,  and  their  attempted  union  broken  up :  yet  they 
were  obliged,  as  the  best  they  could  do  under  the  circumstances, 
to  adopt  generally  the  scale  of  prices  which  had  been  agreed 
upon  by  the  so-called  committees.  They  were,  however,  none 
the  less  restive  under  the  arrogant  and  arbitrary  demands  of  the 
Crispins,  and  indignant  that  any  employer  of  labor  should 
acknowledge  the  right  of  an  employ^  to  interfere  with  his 
business. 

In  justice  to  this  gentleman,  it  should  be  stated,  that  he  felt 
the  steps  taken  by  him  at  that  time  were  for  the  best  interests 
of  all  concerned.  He  states  that  he  has  always  tried  to  treat 
his  workmen  as  equals,  and  has  never  been  intentionally  oppres- 
sive. The  principle  of  arbitration  inaugurated  by  him  at  that 
time,  he  believes  to  be  just,  and  that  it  might  be  made  an  effect- 
ual means  of  settling  all  disputes,  if  both  parties  could  only  be 
prevailed  upon  to  carry  it  out  in  good  faith.  He  regards  some 
union  of  workingmen  as  necessary  for  the  protection  of  their 
own  interests,  and  such  union  is,  in  many  other  respects,  likely 
to  be  more  or  less  advantageous  to  them  ;  and,  though  at  that 
time  there  was  much  in  tlie  Crispin  organization  which  he  could 
by  no  means  approve,  it  was  his  idea  that  it  would  have  been 
better  for  the  interests  of  the  whole  city  if  employers,  by 
adopting  a  kind  and  forbearing  policy  towards  the  working- 
men,  could  have  established  a  better  understanding  of  each 
other's  interests  ;  and  when,  by  mutual  consultation  and  mutual 
concessions,  confidence  and  good  feeling  should  have  obtained, 
it  would  not  have  been  difficult  to  change  or  abolish  the  most 
objectionable  provision  of  the  Crispin  organization. 

On  the  whole,  this  gentleman  seems  to  entertain  broad  and 


INDUSTRIAL  CONCILIATION"  AND  ARBITRATION.  85 


comprehensive  views  of  the  subject,  looking  rather  to  the  per- 
manent welfare  of  the  whole  community  than  to  any  individual 
interest.  The  ideas  of  the  workingmen  are  various,  but  they 
may  be  summed  up  into  three  classes,  as  follows :  — 

The  first  class  are  those  who  do  not  believe  in  arbitration 
with  employers,  who  have  seen  nothing  but  what  is  right  in 
the  most  rigorous  rules  the  Crispins  ever  adopted,  and  who 
would  willingly  have  adopted  those  more  stringent.  The 
admission  of  a  manufacturer  into  their  lodge-room,  as  men- 
tioned previously,  was  regarded  by  these  members  of  the 
organization  as  a  departure  from  the  established  principles  of 
the  Crispin  order,  and  the  acceptance  of  the  doctrine  of  arbi- 
tration as  a  clear  violation  of  its  laws. 

They  argue  that  workingmen  having  their  labor  to  sell  ought 
to  combine  and  fix  among  themselves  what  its  price  shall  be; 
that,  if  workingmen  would  only  so  unite,  good  wages  could  be 
maintained  with  certainty,  employers  would  be  obliged  to  agree 
to  their  demands,  and,  as  they  would  make  their  contracts  for 
goods  accordingly,  it  would  be  advantageous  to  the  community 
as  a  whole.  They  say  that  arbitration  between  employer  and 
employe  always  did  and  always  will  result  to  the  advantage  of 
the  former  and  the  disadvantage  of  the  latter ;  and  that,  there- 
fore, they  regarded  the  establishment  of  such  a  principle  in  1870 
as  a  delusion  and  a  snare  :  it  was  the  entering  wedge  which  first 
weakened  and  finally  led  to  the  complete  overthrow  of  the  Cris- 
pin organization. 

A  second  class  are  of  the  opinion  that  a  proper  system  of 
arbitration  would  do  much  to  put  an  end  to  the  disagreements 
between  employers  and  operatives  ;  that  if  such  aboard  could  be 
permanently  established,  composed  of  representative  men  from 
both  parties,  clothed  with  powers  and  supported  by  the  general 
consent  of  those  interested,  strikes  might  be  rendered  impossible, 
and  the  relations  between  employers  and  their  workmen  made 
mutually  pleasant.  But,  they  saj^,  under  existing  circumstances, 
such  a  scheme  is  altogether  impracticable. 

Manufacturers  generally  are  not  sincere  when  they  talk  of 
justice  to  labor.  It  is  their  interest  and  object  to  get  all  the 
labor  they  can,  for  as  little  pay  as  possible  ;  and  they  will  never 
give  a  cent  more  than  they  are  obliged  to.  They  do  not  gener- 
ally believe  in  the  right  of  workingmen  to  combine,  but  are 
continually  arguing  that  the  law  of  supply  and  demand  regu- 


86  rt^DUSTEIAL  CONCILIATION  AND  ARBITRATION. 


lates  the  rate  of  wages,  and  that  it  is  their  right  as  employers 
to  hire  Labor  in  a  free  market  for  as  low  a  price  as  possible. 
They  claim  that  while  employers  hold  such  views  it  is  very  evi- 
dent they  cannot  be  induced  to  treat  with  workingmen  on  equal 
terms  under  any  form  of  organization. 

They  further  say  that,  in  their  opinion,  the  arrangements  made 
in  1870  were  only  agreed  to  because  employers  could  not  help 
themselves,  and  that  they  were  sure  to  be  violated  whenever 
interest  demanded. 

The  third  class  of  workingmen,  though  perhaps  not  the  most 
numerous,  hold  about  the  same  sentiments  as  those  expressed 
by  the  manufacturer  previously  quoted.  They  state  that  they 
have  been  always  more  than  ready  to  welcome  any  overtures 
from  the  manufacturers  looking  toward  arbitration  in  the  settle- 
ment of  disputes  or  difficulties,  and  have  been  ready  on  all 
occasions  to  do  their  utmost  to  bring  about  friendly  relations 
between  employers  and  the  Crispin  organization.  They  concede 
that  some  of  the  Crispin  laws  were  illiberal  and  unjust,  placing 
improper  restrictions  upon  both  parties,  —  restrictions  which, 
from  their  very  nature,  could  not  be  successfully  maintained  for 
any  length  of  time.  They  specify  in  particular  those  laws 
relating  to  the  hiring  and  discharge  of  help,  against  the 
enforcement  of  which  they  declare  they  often  protested  in  the 
lodge-room,  pronouncing  interference  in  these  matters  one  of 
the  most  fatal  weaknesses  of  the  Crispin  order. 

This  class  of  men  say  they  always  have  deplored  strikes,  and 
never  gave  consent  to  one,  except  as  a  last  resort.  When, 
therefore,  arbitration  was  proposed  by  a  leading  manufacturer, 
the  idea  was  hailed  by  them  as  a  long  step  in  the  right  direc- 
tion, and  they  were  ready  to  aid  it  by  every  means  in  their 
power.  A  mass  meeting  of  the  lodges  was  held ;  and,  after 
some  discussion,  a  committee  of  five  was  appointed  to  confer 
with  a  like  number  of  manufacturers.  On  the  21st  of  July, 
1870,  these  committees  met  in  the  Board  of  Trade  rooms. 
There  seems  to  have  been  no  record  kept  of  the  transactions  of 
this  meeting ;  but  members  on  the  part  of  the  Crispins  state 
that  it  was  any  thing  but  harmonious,  and  that  more  than  once 
open  rupture  seemed'  imminent.  One  manufacturer  made  a 
speech,  in  the  course  of  which  he  said  that  if  any  one  had  told 
him  twenty-four  hours  before,  that  he  could  have  been  persuaded 
to  meet  and  treat  with  Crispins  on  any  terms,  he  should  have 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  87 


felt  insulted.  Through  the  exertions  of  a  few  more  temperate 
minds,  however,  a  better  spirit  finally  prevailed  ;  and  after 
much  discussion,  taking  up  two  full  days,  a  list  of  prices  was 
agreed  upon  and  adopted,  to  continue  in  force  for  one  year. 
The  two  committees  then  exchanged  congratulations.  Speeches 
were  made  by  some  of  the  manufacturers,  in  which  they  com- 
mended the  Crispin  organization,  and  pledged  themselves  to 
rigidly  adhere  to  the  agreement  made,  and  to  use  every  proper 
means  in  their  power  to  have  it  recognized  and  adopted  in  the 
trade  throughout  the  city.  After  this  united  action,  several 
strikes,  which  had  previously  been  inaugurated,  came  at  once 
to  an  end.  The  Crispins  were  jubilant,  and  considered  they 
had  gained  a  point  in  being  recognized  by  employers  as  a  body 
to  be  negotiated  with  on  equal  terms  ;  and  much  confidence  was 
expressed  on  all  sides,  that  at  length  amicable  relations  had  been 
permanently  established  between  the  manufacturers  and  work- 
ingmen  of  Lynn. 

Notwithstanding  the  fault  found  with  the  doings  of  the  self- 
appointed  committee  (so  called),  there  is  no  doubt  that  for 
the  time  being,  at  all  events,  they  were  successful ;  and  the  list 
of  prices  agreed  to  by  them  was  substantially  that  of  the  trade 
throughout  the  city  for  the  next  year. 

It  is  charged,  however,  by  members  of  the  Crispins,  that 
they  could  never  again  get  that  board  of  arbitration  to  meet 
with  them  ;  that,  in  the  settlement  of  difficulties  which  now  and 
then  arose  from  various  causes,  in  several  of  the  shops,  they 
received  no  aid  or  countenance  from  the  employers ;  and  that 
they  had  to  assume  the  whole  burden  of  enforcing  the  scale 
of  prices,  which,  however,  being  printed,  and  headed,  "  List  of 
prices  agreed  upon  between  the  manufacturers  and  Knights  of 
St.  Crispin  for  one  year  from  date,"  gave  them  a  support  in  the 
arrangement  of  grievances  they  could  not  otherwise  have  had. 
Yet,  still,  it  is  evident  that  the  Lynn  shoe  manufacturers  gener- 
ally considered  that  during  this  year  there  had  been  established 
some  principle  of  arbitration  to  which  they  felt  themselves,  to  a 
great  extent  at  least,  obliged  to  conform. 

At  the  expiration  of  the  time  agreed  upon,  another  committee 
of  employers  met  with  the  Crispin  committee  of  arbitration. 
They  congratulated  each  other  upon  the  success  which  had 
attended  the  fulfilment  of  the  agreement  just  ended,  the  gen- 
eral peace  and  harmony  which  had  prevailed,  and  the  prosper- 


88  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 

ous  condition  of  the  city;  after  which,  a  scale  of  prices  was 
agreed  to  and  adopted  for  another  year,  which  was  subse- 
quently printed  and  circulated  through  all  the  shoe  shops  in  the 
city.  It  is  worthy  of  notice,  that  during  these  two  years,  when 
a  fixed  rate  for  labor  had  been  established  by  this  joint  commit- 
tee, the  shoe  business  prospered,  and  the  active  and  material 
growth  of  Lynn  was  the  subject  of  frequent  and  flattering  com- 
ment, not  only  in  the  local  press,  but  throughout  the  country. 

The  statements  made  regarding  the  condition  of  affairs  dur- 
ing the  year  of  the  second  compact  between  the  manufacturers 
and  the  workmen,  ending  June  10,  1872,  are  in  some  respects 
conflicting.  While  there  was  no  noticeable  outbreak,  tliose  ac- 
quainted with  the  inside  history  of  that  time  state  that  dis- 
trust and  bitter  feelings  began  to  be  engendered  as  early  as  the 
fall  of  1871 ;  that,  though  latent  and  smouldering,  the  fires  of 
strife  were  then  kindled  which  burst  into  flame  the  next  sum- 
mer, and  thus  brought  about  the  disastrous  strike  of  1872. 
The  records  of  the  Crispin  lodge  show  several  complaints  against 
manufacturers  for  cutting  under  the  established  prices,  in  less 
than  three  months  from  the  date  of  agreement ;  and  the  lodge 
records  for  the  latter  part  of  1871  and  the  first  part  of  1872 
show  continual  difficulties  of  that  nature  brought  into  the 
lodge-room.  The  Crispins  said,  that,  in  their  efforts  to  adjust 
these  difficulties,  they  received  neither  sympathy  nor  aid  from 
employers  ;  that,  though  they  repeatedly  tried,  they  never  could 
get  a  meeting  with  any  board  of  arbitration  on  the  part  of 
employers ;  and  that,  finally,  those  manufacturers  who  had 
taken  part  in  assisting  to  establish  the  scale  of  prices  refused 
to  be  considered  as  belonging  to  a  board  of  arbitration,  were 
unwilling  even  to  recognize  the  existence  of  any  such  board  or 
principle,  and  absolutely  declined  to  discuss  the  subjects  which 
had  been  considered  nvith  so  much  harmony  and  good  feeling 
when  the  compact  was  made. 

On  the  other  hand,  it  is  conceded  that  bitter  and  vindictive 
feelings  crept  into  the  lodge-room,  and  at  times  controlled  the 
counsels  of  Crispins.  The  more  intelligent  and  reasonable 
among  them  lost  much  of  their  influence ;  and  there  were  some 
instances  where  temporary  majorities,  in  meetings  of  the  order, 
made  decisions  very  clearly  unjust,  and  against  the  interests 
and  rights  of  employers.  It  is  also  conceded  that  in  many 
respects  Crispinism  lost  much  of  its  former  power  over  its 


IKDUSTEIAL  CONCILIATION  AND  ARBITRATION. 


89 


members  generally:  they  paid  little  regard  to  its  rules,  and 
were  seemingly  weary  of  the  restraints  imposed  by  the  organiza- 
tion. It  is  said,  however,  that  these  troubles  were  but  little 
known  to  the  general  public ;  that  the  Crispins,  as  an  organiza- 
tion, adhered  to  the  established  price  list,  and  still  struggled  to 
maintain  it  throughout  the  city. 

Manufacturers,  on  the  other  hand,  charge  that  Crispinism 
had  become  perfectly  unbearable  ;  that  the  Crispins,  elated 
with  success,  and  full  of  self-confidence,  became  every  day  more 
and  more  unreasonable  in  their  demands ;  that  they  were  con- 
tinually trumping  up  fresh  grievances,  and  insisting  upon  con- 
ditions, not  only  inconvenient  to  employers,  and  injurious  to 
their  interests,  but  tending,  if  carried  out,  to  drive  trade  from 
the  city,  and  ruin  all  concerned. 

They  further  charge  that  certain  of  the  Crispins  had  entered 
into  secret  contracts  with  some  firms  to  work  for  less  than  the 
established  prices,  induced  to  do  so  by  promise  of  steady  work 
throughout  the  year ;  and  that  these  very  men  were  the  loudest 
in  insistance  that  the  trade  generally  should  conform  to  the 
established  price  list.  A  few  declare  that  the  Crispin  organiza- 
tion was  at  this  time  entirely  in  the  hands  of  demagogues,  who 
only  used  the  order  for  their  own  selfish  purposes. 

Some  of  the  most  intelligent  and  reliable  men  who,  in  1872, 
were  leading  and  prominent  members  of  the  order,  state  that 
shortly  before  the  termination  of  the  second  compact  it  was 
evident  to  them  that  certain  manufacturers  were  determined, 
if  possible,  to  prevent  any  further  agreements  of  that  nature  ; 
and  that  in  the  spring  of  that  year  they  united,  with  the 
resolute  purpose  of  breaking  up  the  Crispin  organization. 

They  further  say,  that,  while  it  must  be  admitted  that  there 
is  some  truth  in  the  charges  brought  against  the  order,  it  is  not 
the  less  true  that  employers  never  sincerely  tried  to  make  the 
best  of  it,  but  all  along  showed  b}^  their  actions  a  spirit  of 
opposition  to  it  in  any  form  ;  that,  if  the  committee  of  arbitra- 
tion on  the  part  of  employers  had  even  partially  done  as  they 
promised,  there  would  have  been  no  trouble,  as  the  workingmen 
were  always  more  than  willing  to  leave  any  grievance,  real  or 
supposed,  to  be  settled  upon  that  plan ;  that,  had  employers 
generally  shown  such  interest  in  the  well-being  of  their  em- 
ployes as  they  all  of  them  professed  to  feel,  any  of  the  unrea- 
sonable rules  or  laws  of  the  Crispin  order  could  and  would 
have  been  modified  or  abolished. 

12 


90 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


They  express  respect  for  the  position  taken  by  some,  who, 
from  the  very  first,  were  the  avowed  and  consistent  opponents 
of  the  order,  but  were  still  too  high-minded  and  honorable  to 
take  underhanded  action  against  it. 

But  they  allege  that  there  were  some  employers  so  mean  as 
to  bribe  certain  of  their  men  to  divulge  the  secrets  of  the 
lodge-room,  and  to  act  the  part  of  traitors  to  the  order ;  that 
many  of  the  wrongs,  and  much  of  the  injustice,  with  which  the 
order  was  charged,  were  instigated  and  brought  about  by  these 
very  men,  acting  under  the  instructions  of  their  employers. 
They  further  point  out,  that  the  contentions  about  prices  for 
labor  have  always  been  caused  by  a  few  of  the  manufacturers, 
who,  with  selfish  greed,  were  struggling  to  gain  advantage 
over  their  neighbors ;  that  the  difference  of  two  or  three  cents 
per  pair  on  the  price  of  the  finished  shoe  is  a  difference  the 
consumer  will  never  feel,  but  that  it  is  a  matter  of  serious 
importance  to  the  workman.  They  claim  that  employers  should 
consider  this  fact  first  of  all,  in  making  contracts  for  goods  with 
dealers.  They  finally  allege,  that  in  the  spring  of  1872,  when 
contracts  with  the  dealers  were  made  for  the  next  season's 
work,  there  was  such  sharp  competition  among  manufacturers; 
that  they  were  taken  at  rates  too  low  to  afford  the  price  for 
labor  established  by  the  board  of  arbitration  ;  and  that  this, 
more  than  any  other  cause,  led  to  the  strike  the  next  summer, 
and  united  employers  to  overthrow  the  Crispin  organization. 

About  the  middle  of  June,  1872,  the  following  circular,  signed 
by  the  Crispin  committee,  was  sent  to  all  the  shoe-shops  in  the 
city:  — 

To  the  Boot  and  Shoe  Manufacturers  of  Lynn. 
"Gentlemen,  —  We  the  undersigned,  a  committee  appointed  by  the 
Knights  of  St.  Crispin,  in  mass  convention  assembled,  respectfully  notify 
you  that  we  are  prepared  to  meet  with  a  similar  committee  of  the  shoe  manu- 
facturers of  Lynn,  with  a  view  to  arranging  a  list  of  prices  for  the  coming 
year.  Please  inform  us,  through  our  secretary,  of  your  action,  at  as  early  a 
date  as  convenient." 

To  this  communication  no  reply  was  ever  received.  About 
the  beginning  of  July,  some  of  the  large  firms  intimated  their 
intention  of  reducing  the  price  for  setting  edges  one-half  of  a 
cent  per  pair,  claiming  that  having  introduced  edge  setting 
machines  the  workmen  could  afford  the  reduction.    This  re- 


INDUSTRIAL  CONCILIATION  AND  AEBITRATION.  91 


duction  they  held  necessary  to  enable  them  to  compete  with 
firms  outside  of  the  city. 

The  workmen  replied  that  the  edge  setting  machine  did  not 
in  the  least  facilitate  their  labor :  that  manufacturers  were  pay- 
ing contentedly  the  higher  price  with  or  without  machines, 
and  urged  that  the  contracts  were  taken  on  that  basis ;  they 
finally  invited  their  employers  to  appoint  a  committee  to  fix  a 
scale  of  prices,  in  consultation  with  the  Crispins,  as  in  the  pre- 
ceding years.  To  this  the  employers  rejoined,  that  for  the 
future  they  intended  to  manage  their  business  without  consul- 
tation with  any  one ;  the  price  offered  was  all  they  could  or 
would  pay,  and  the  workmen  must  either  take  that,  or  leave. 
Of  course  this  condition  of  things  speedily  became  a  subject  of 
discussion  in  the  Crispin  lodges.  They  held  mass  meetings, 
some  of  which  were  full  of  intense  excitement,  and  lasted  all 
night.  New  members  joined,  and  old  members  in  arrears  came 
flocking  forward  to  pay  their  dues. 

Resolutions  were  passed  declaring  their  firm  determination  to 
adhere  to  the  principles  of  the  order.  Finally  committees  were 
appointed  to  wait  upon  the  manufacturers,  and  endeavor  to 
bring  about  a  settlement  of  the  difficulties.  Members  of  those 
committees  state  that  when,  in  the  performance  of  the  duty  as- 
signed them,  they  approached  the  same  parties  by  whom  they 
had  been  so  courteously  received  on  previous  occasions,  and 
with  whom  they  had  arranged  the  scale  of  prices  for  the  pre- 
ceding year,  they  were  met  by  contempt,  and  ordered  to  leave 
the  premises  ;  so  that  those  who  before  had  shown  a  most  kindly 
feeling  toward  their  society  were  then  unwilling  to  recognize 
its  existence. 

These  facts  being  reported  to  the  lodges,  a  mass  meeting  was 
called,  at  which  it  was  ordered  that  the  men  in  such  of  the 
shops  as  were  cutting  under  the  established  prices  be  requested 
to  finish  what  work  they  had  in  hand,  and  then  at  once  leave 
the  shop.  In  accordance  with  this  action,  the  hands  in  thirty- 
five  shops  stopped  work ;  and  it  became  evident  that  the  rela- 
tions of  capital  and  labor  in  Lynn  were  to  go  through  a  serious 
crisis.  At  first,  however,  the  other  shops  in  the  city  kept 
steadily  at  work;  some  of  the  employers  freely  saying  that  they 
could  see  no  particular  reason  for  the  reduction,  and  therefore 
they  should  continue  to  pay  the  old  prices. 

It  is  believed,  that  had  this  dispute  about  prices  been  the  real 


92  INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 


question  at  issue,  and  had  it  been  left  to  be  decided  upon  its 
merits,  the  Crispins  would  have  gained  their  point.  It  very 
soon  became  evident,  however,  that  this  was  only  the  first  move, 
—  a  mere  outpost  in  the  battle,  —  the  real  object  of  which  was 
to  be  the  utter  and  complete  overthrow  of  the  Crispin  organiza- 
tion in  Lynn.  For,  with  this  object  openly  avowed,  the  manu- 
facturers commence  to  organize,  funds  were  raised,  and  agents 
sent  to  the  several  employers  to  enlist  their  aid  and  sympathy 
in  the  movement. 

The  following  is  an  extract  from  "  The  Lynn  Reporter,'' 
August  10,  1872 :  — 

'*  On  the  2d  of  August,  a  meeting  of  the  shoe  manufacturers  was  held,  at 
which  were  present  about  fifty  of  those  most  prominent  in  the  business.  At 
this  meeting,  the  opinion  was  generally  expressed,  that  the  state  of  things  as 
had  for  some  time  past  existed  in  Lynn  could  not  continue  without  serious 
injury  to  the  business  of  the  city-  It  was  stated  that  some  of  the  manufac- 
turers had  already  established  flourishing  factories  in  distant  towns,  where 
labor  was  untrammelled  and  consequently  cheaper  than  in  Lynn,  and  that 
others  were  making  arrangements  for  an  early  removal.  It  seemed  to  be  the 
unanimous  feeling,  that  something  should  be  done  to  check  this  emigration 
of  business,  and  the  first  step  towards  that  end  must  be  in  each  manufacturer 
maintaining  the  same  control  of  his  business,  especially  in  regard  to  the  pay- 
ment of  wages,  that  is  enjoyed  by  the  manufacturers  in  other  places,  thus 
enabling  the  Lynn  manufacturers  to  successfully  compete  with  those  in  other 
places.  ...  It  was  then  unanimously  resolved,  '  That  it  is  for  the  best 
interests  of  the  city  of  Lynn,  that  every  manufacturer  manage  his  own  busi- 
ness irrespective  of  any  organization.'  " 

After  the  passage  of  this  resolution  condemning  organizations 
of  workingmen,  the  manufacturers  proceeded  to  organize  under 
the  following  agreement :  — 

"  We  the  undersigned,  manufacturers  of  the  city  of  Lynn,  hereby  agree 
that  on  and  after  Saturday,  August  10,  1872,  we  will  employ  no  person  sub- 
ject to,  or  under  the  control  of,  any  organization  claiming  the  power  to  inter- 
fere with  any  contract  between  employer  and  employe." 

A  committee  was  appointed  to  circulate  the  above  through 
the  city,  and  it  was  subsequently  printed  with  fifty  names 
appended.  , 

At  a  subsequent  meeting  of  manufacturers,  held  in  Music 
Hall,  August  8,  it  was  unanimously  — 

"  Resolved,  That  we  notify  our  workmen  that  after  Saturday,  August  10, 
we  will  give  no  new  work  to  any  person  subject  to,  or  under  the  control  of, 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


93 


any  organization  claiming  the  power  to  interfere  with  any  contract  between 
employer  and  employe." 

The  result  of  this  action  was  that  more  than  two  thousand 
workmen  gave  up  their  situations,  rather  than  leave  the  Crispin 
organization. 

At  a  mass  meeting  of  the  Crispins,  held  soon  after,  the  fol- 
lowing preamble  and  resolutions  were  adopted  :  — 

"  Whereas,  There  is  a  disposition  on  the  part  of  certain  manufacturers  in 
the  city  of  Lynn  to  dictate  unjust,  illiberal,  and — to  use  a  mild  phrase  — 
tyrannical  terms,  to  those  in  their  employ;  and 

"  Whereas,  Our  acceptance  of  such  terms  could  only  be  made  by  a  com- 
plete sacrifice  of  self-respect  and  personal  independence:  therefore,  be  it 

Resolved,  By  the  Crispins  of  Lynn,  in  mass  meeting  assembled,  That, 
while  we  recognize  the  right  of  manufacturers  to  offer  such  terms  as  justice 
and  regard  for  their  own  interests  may  require,  we  also  assert  and  main- 
tain, at  every  cost  and  every  hazard,  our  right  to  belong  to,  and  partici- 
pate in,  any  organization,  social,  industrial,  religious,  political  or  beneficiary, 
which  in  our  judgment  is  wise  and  proper ;  and  any  attempt  on  the  part  of 
any  one  to  abridge  or  obstruct  such  right  is  a  vile  and  indefensible  interfer- 
ence with  personal  liberty." 

« 

Thus  the  Crispins  joined  issue  in  a  struggle  which  they  felt 
was  to  be  for  the  life  of  their  organization  ;  and  they  clearly  saw 
that  the  manufacturers  were  bound  together  as  they  never  had 
been  previously.  The  employes  in  a  certain  shop  were  all 
Crispins ;  there  had  been  no  trouble  there,  as  Crispin  prices 
were  paid ;  but  this  firm  had  signed  the  agreement  of  the  man- 
ufacturers not  to  employ  Crispins  after  August  10,  and  on  that 
day  the  senior  partner  called  his  men  together,  and  told  them 
they  must  either  abandon  the  Crispin  organization,  or  cease  to 
be  employed  by  him.  You  can  go,"  he  said,  "or  you  can  re- 
main. I  do  not  ask  you  to  work  at  any  reduction  of  wages,  for 
I  am  ready  to  pay  the  very  highest  prices  ;  but,  if  you  remain, 
you  must  cease  to  be  Crispins,  for  no  member  of  that  order 
shall  occupy  a  bench  here  after  to-day."  They  were  given  a 
day  to  think  of  it ;  but  in  fifteen  minutes  they  reported,  that, 
rather  than  submit  to  such  unjust  and  arbitrary  interference 
with  their  personal  liberty  and  rights  as  freemen,  they  would 
leave ;  and  they  therefore  all  left  at  once. 

In  another  shop,  the  following  letter  was  read  to  the  work- 
men by  one  of  the  firm,  in  connection  with  the  agreement  signed 
by  them  :  — 


94  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


In  submitting  the  proposition  herewith  placed  before  our  employes,  we 
desire  to  state  the  following  facts  :  — 

"  First,  That  in  assuming  the  position  taken  in  the  accompanying  reso- 
lution, manufacturers  of  the  city  of  Lynn,  representing  at  least  three-fourths 
of  the  shoe  manufacturing  business  of  this  city,  have  acted  from  a  convic- 
tion, reached  after  the  most  careful  and  deliberate  thought,  that  upon  no 
other  basis  can  this  business  be  successfully  prosecuted. 

Second,  That,  in  taking  this  position  as  a  body,  we  have  fully  counted 
the  cost,  and  feel  that  we  are  united,  as  never  before,  in  solemn  agreement 
to  abide  the  result  of  this  action,  at  whatever  sacrifice  to  our  business  and 
to  our  capital. 

Third,  That  the  question  of  wages  has  in  no  manner  entered  into  our 
counsels,  but  that  this  question  is  left  open  to  the  unembarrassed  action  of 
employer  and  employe. 

"  Fourth,  That  we,  as  a  firm,  have  had,  and  still  have,  no  desire  to  change 
our  prices  for  work  during  the  present  season. 

"  Fifth,  That  it  is  the  earnest  desire  of  this  firm  to  conduct  its  business 
in  such  a  manner  that  the  annual  earnings  of  our  employes  may  reach  the 
largest  possible  amount;  and  we  submit  the  fact  that  our  books  show  that 
this  result  was  much  more  fully  attained  during  the  years  when  we  were  left 
free  to  arrange  prices  with  our  workmen  to  om-  mutual  satisfaction,  than  it 
has  been  during  the  two  years  just  passed,  when  subject  to  outside  dictation. 

"  Sixth,  That  while  this  firm  will  in  no  case  recede  from  the  position 
now  taken,  whether  supported  by  others  or  not,  we  would  express  the  sincere 
desire  that,  whatever  may  be  the  issue  in  the  question  now  before  us,  no 
action  will  be  taken  upon  either  side  in  a  spirit  which  will  tend  to  destroy 
the  feelings  of  friendship  and  respect  which  we  believe  now  mutually  prevail 
between  us. 

(Signed)   

««  Lynn,  Aug.  9,  1872." 

The  alternative  of  withdrawing  from  the  Knights  of  St. 
Crispin,  or  giving  up  their  situations,  being  thus  placed  before 
the  workmen,  they  one  and  all  preferred  the  latter,  and  left  the 
shop.  These  examples  were  quickly  followed  in  other  shops ; 
very  soon  the  city  swarmed  with  idlers,  and  the  Crispin  com- 
mittees found  a  most  difficult  task  upon  their  hands.  By  Art. 
V.  of  the  general  laws,  every  one  of  these  unemployed  men 
was  entitled  to  draw  from  the  funds  of  the  order  :  for  a  single 
man,  six  dollars  per  week ;  for  a  man  with  a  family,  six  for  him- 
self, two  for  a  wife  or  mother  dependent  upon  him,  and  one  for 
each  child  under  twelve  years  of  age.  As  no  ordinary  treasury 
could  long  endure  such  a  drain  upon  its  resources,  the  Crispins 
soon  began  to  realize  that  the  situation  was  grave  in  the  ex- 
treme, and  that  their  prospects  of  success  were  every  day 
becoming  more  and  more  doubtful.    NotAvithstanding  the  great 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  95 


excitement,  and  though  various  rumors  were  daily  floating 
through  the  city,  it  was  never  alleged  that  any  sort  of  coercion 
was  threatened  against  those  of  the  trade  who  did  not  belong 
to  the  order.  Indeed,  it  was  the  subject  of  much  comment,  in 
newspapers  which  in  other  respects  did  them  less  than  justice, " 
that  the  workingmen  were  worthy  of  praise  for  the  quiet  and 
peaceable  manner  in  which  they  conducted  themselves  through- 
out the  whole  of  the  troubles. 

August  17,  the  Crispin  committee  of  arbitration  held  an  all- 
night  session,  during  which  the  situation  was  discussed  in  all  its 
aspects ;  and  the  result  of  their  deliberations  was  a  determina- 
tion to  make  an  attempt  to  effect  a  reconciliation.  A  committee 
was  appointed,  which,  the  next  Monday  forenoon,  waited  upon 
many  of  the  leading  manufacturers  who  had  signed  the  agree- 
ment of  August  8,  and  made  to  them  the  following  proposition, 
upon  the  adoption  of  which  the  committee  guaranteed  that  the 
men  would  return  to  their  work:  Firstly^  That  the  question  be 
not  raised  by  the  employers,  whether  or  not  the  men  belonged 
to  the  Crispin  organization,  Avhich  order  should  continue  to  exist 
as  heretofore.  And,  secondly^  that  the  list  of  prices  be  abol- 
ished, and  that  each  firm  make  its  own  contracts,  and  arrange 
its  own  prices  with  its  own  workmen,  irrespective  of  any  other 
firm,  and  without  interference  by  the  Crispin  organization.  It 
was  confidently  expected  that  this  action  would  impress  the 
manufacturers  favorably,  and  that  they  would  consent  upon 
these  terms  to  resume  business. 

But,  when  waited  upon  by  the  above-mentioned  committee, 
they  one  and  all  refused  to  receive  any  proposition  from  Cris- 
pins, taking  the  ground,  that,  having  agreed  to  give  no  employ- 
ment for  the  future  to  any  men  subject  to  the  control  of  such 
organization,  they  felt  bound  not  to  acknowledge  its  existence. 

At  a  mass  meeting  of  the  Crispins,  held  next  forenoon,  the 
board  of  arbitration  reported  the  failure  of  their  efforts  at  recon- 
ciliation ;  and  when  it  became  known  that  the  ultimatum  of  the 
manufacturers  was  an  entire  and  final  renunciation  of  Crispin- 
ism  on  the  part  of  the  workmen  before  any  proposition  of 
settlement  would  be  entertained,  there  was  considerable  excite- 
ment ;  speeches  were  made,  and  resolutions  passed  by  a  unani- 
mous vote,  and  amidst  much  enthusiasm,  pledging  unwavering 
fidelity  to  the  order.  Notwithstanding  this  last  display  of  spirit, 
it  soon  became  evident  that  the  Crispin  organization  was  fast 


96  INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


becoming  weaker;  that  its  power  of  resistance  was  gone,  and 
its  unity  broken  up.  • 

Manufacturers  commenced  work  with  what  help  they  could 
get,  either  in  Lynn  or  in  other  places.  Some  firms  sent  their 
'stock  to  Portland,  Newburyport,  and  other  towns,  to  be  made 
up  ;  other  firms  set  men  to  work  under  what  they  called  a 
special  agreement,  —  which  was,  that,  though  they  belonged  to 
the  Crispin  organization,  there  was  an  express  understanding 
that  tliis  fact  should  have  nothing  to  do  with  any  of  their  rela- 
tions to  their  employers.  The  board  of  arbitration  having 
remonstrated  against  such  arrangements  as  a  violation  of  the 
rules  of  the  Crispin  order,  the  workmen  in  one  case  published  a 
card  in  the  newspapers  to  the  effect  that  they  were  not  at  work 
under  the  force  of  the  manufacturers'  resolution,  but  that  they 
still  regarded  themselves  subject  to  the  orders  of  the  Knights  of 
St.  Crispin.  P'or  this  action,  these  men  were  at  once  discharged 
from  their  employment,  and  ordered  to  leave  the  establishment. 
They  soon  afterwards,  however,  published  another  card,  retract- 
ing their  former  statement,  and  were  again  set  to  work  in  their 
old  places. 

By  this  time,  the  Crispin  board  of  arbitration  began  to  feel 
itself  powerless  :  the  treasury  was  exhausted  ;  two  thousand 
members  of  the  order  were  without  employment  and  mostly 
without  means  of  living.  Manufacturers  were  offering  work 
and  the  highest  prices  to  all  who  would  consent  to  renounce 
fealty  to  the  Knights  of  St.  Crispin.  It  is  not  surprising,  there- 
fore, that  one  shop's  crew  after  another  met  together,  and,  com- 
ing to  the  conclusion  that  any  further  struggle  was  hopeless, 
voted  to  go  to  work,  on  the  best  terms  they  could  get.  By  the 
24th  of  August  the  strike  was  virtually  at  an  end ;  and,  though 
lodge  meetings  were  still  held  by  an  indomitable  few,  the  Cris- 
pin organization,  in  spite  of  their  efforts,  finally  fell  entirely  to 
pieces  in  Lynn.  About  the  beginning  of  1873  the  last  charter 
was  surrendered  to  the  International  Grand  Lodge.  During 
the  next  two  years  there  was,  as  is  well  known,  a  general 
depression  in  all  kinds  of  business  ;  and  the  shoe  trade  came  in 
for  its  share.  There  was  little  demand  for  goods,  the  sales 
being  chiefly  of  the  cheaper  grades.  Manufacturers  were  in 
sharp  competition  with  each  other  for  orders,  and  workingraen 
without  organization  and  at  their  mercy.  Prices  for  labor  in 
nearly  all  departments  of  the  business  went  down  until,  it  is 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  97 

•  said,  a  good  workman,  laboring  hard  ten  or  twelve  hours  a  day, 
could  not  earn  more  than  eight  or  nine  dollars  a  week.  To 
understand  the  full  force  of  this  statement,  it  is  necessary  to 
remember  that  at  the  best  of  times  the  busy  seasons  are  brief, 
and  that  there  are  always  many  months  in  the  year  when  there 
is  but  little  chance  of  employment. 

Manufacturers  themselves  admitted  that  the  prices  for  labor 
were  too  low,  and  confessed  that  they  could  not  understand 
how  men  with  families  to  support  managed  to  do  so,  even  when 
they  had  constant  work.  Some  of  them  even  began  to  admit 
that  the  Crispin  organization,  with  all  its  faults,  contained  some 
good  features,  and  that  some  association  of  workingmen  was 
necessary,  not  only  for  their  own  protection,  but  for  certain 
advantages  to  employers. 

With  considerable  countenance  and  aid,  therefore,  from  some 
of  the  manufacturers,  the  workingmen  again  organized,  under 
the  name  of  the  Shoemakers'  League.  One  of  the  main  fea- 
tures of  this  organization  was  the  establishment  of  a  board  of 
arbitration.  This  was  about  the  beginning  of  1875,  and,  though 
they  held  meetings  more  or  less  regularly,  there  is  no  evidence 
that  they  ever  exercised  much  influence ;  and  as  the  members 
hardly  numbered  three  hundred  at  the  most,  the  League  could 
never  claim  properly  to  represent  the  general  interests  of  the 
Lynn  workingmen.  Therefore,  after  about  an  eleven-months 
struggle  to  maintain  an  existence,  on  the  seventh  day  of 
December,  1875,  by  unanimous  vote,  the  League  dissolved,  and 
the  members  organized  as  Unity  Lodge,  K.  O.  S.  C,  adopting 
the  ritual  of  the  order,  and  receiving  from  the  International 
Grand  Lodge  the  charter  which  was  surrendered  in  1873. 
Unity  Lodge  numbered,  in  1876,  nearly  three  thousand  mem- 
bers, and  after  its  organization  sent  delegates  into  twenty-eight 
towns,  and  instituted  thirty-one  new  lodges,  as  follows  :  — 

West  Boylston,  Milford,  Haverhill,  Marblehead,  Worcester, 
Spencer,  Stoneham,  Hopkinton,  Medway  Village,  West  Med- 
way,  Rockland,  Stoughton,  Randolph,  Metliuen,  Newburyport, 
Millbury,  Beverly,  Salem,  Marlborough,  Natick,  Cochituate, 
Quincy,  Weymouth,  Tapleyville,  Holbrook,  Webster,  Brockton, 
and  North  Brookfield,  in  Massachusetts  ;  and  Pittsfield  in  New 
Hampshire.  All  these  continued,  for  a  time,  in  a  prosperous 
condition.  The  most  objectionable  features  of  the  old  order 
were  done  away  with.    No  claim  was  made  to  any  right  of 

13 


98 


INDUSTETAL  COKCILIATTON  A^^D  AEBITEATION. 


interference  with  employers  in  the  hiring  and  discharge  of  help, 
nor  in  the  teaching  of  new  help  any  part  or  parts  of  the  trade. 
No  strike  could  be  ordered,  sustained,  or  allowed,  except  by 
vote  of  the  board  of  arbitration,  and  the  unanimous  consent  of 
the  shop's  crew  where  such  strike  took  place. 

The  board  of  arbitration  was  composed  of  eleven  members, 
each  from  a  different  branch  of  labor,  as  follows  :  a  cutter, 
stock  fitter,  laster,  McKay  stitcher,  beater-out,  trimmer  and 
edge  setter,  hand  nailer  and  shaver,  Tapley  heel  burnisher, 
McKay  nailer  and  shaver,  bottom  finisher,  channeller. 

They  were  elected  to  office  for  a  year,  and  chosen  not  alone 
for  their  integrity  and  general  intelligence,  but  also  because 
they  were  regarded  as  superior  workmen,  each  being  an  expert 
in  his  branch  of  the  business. 

To  this  board  were  committed  all  the  active  powers  of  the 
lodge.    The  following  is  an  extract  from  the  by-laws  :  — 

♦'ARTICLE  X. — ARBITRATIOX. 

"  Sect.  2.  At  the  first  meeting  of  the  board,  they  shall  organize,  by 
electing  a  president,  secretary,  and  treasurer.  It  shall  be  the  duty  of  the 
president  to  convene  the  board,  on  the  written  application  of  any  five  mem- 
bers of  the  lodge  working  in  a  shop,  or  on  application  of  a  manufacturer  who 
has  cause  to  think  he  is  aggrieved.  The  secretary  shall  keep  a  true  and  cor- 
rect record  of  the  proceedings  of  all  meetings  of  the  board,  and  of  all  subjects 
referred  to  them  for  decision,  and  shall  report  the  doings  of  the  board  to  the 
lodge,  at  the  first  meeting  in  every  month. 

♦♦  Sect.  4.  The  board  shall  have  power  to  settle  all  difficulties  that  may 
arise  between  any  member  or  members  of  the  lodge  and  their  employers,  by 
arbitration;  and  it  shall  be  the  duty  of  the  board,  when  such  case  has  been 
referred  to  them,  to  carefully  examine  all  the  circumstances  connected  with 
it,  and  endeavor  to  effect  a  settlement  by  arbitration,  before  giving  their 
consent  to  a  strike.  It  will  not  be  the  duty  of  the  board  to  give  aid  or 
encouragement  to  a  strike  begun  without  their  consent,  by  any  members  of 
the  order. 

*'  Sect.  5.  When  any  matter  has  been  referred  to  the  board  for  arbitra- 
tion, it  shall  be  their  duty  to  appoint  a  committee  from  the  board,  who  shall 
meet  a  committee  appointed  by  the  employer. 

*♦  If  the  committees  agi'ee  upon  any  plan  of  settlement,  any  decision  they 
may  make  shall  be  final.  An  appeal  may  be  made  to  the  lodge  from  all  de- 
cisions made  by  the  board,  except  in  cases  referred  to  them  for  arbitration. 
This  section  shall  never  be  repealed. 

"  Sect.  6.  The  board  shall  meet  once  in  two  weeks,  or  oftener  if  neces- 
sary, and  shall  require  at  all  times  a  majority  of  its  members  to  transact 
business. 

♦'  Sect.  7.  The  board  shall  have  power  to  call  a  special  meeting  of  the 
lodge  at  any  time  they  may  deem  it  necessary." 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  99 


In  the  thirteen  months  immediately  succeeding  its  organiza- 
tion, this  board  settled  about  one  hundred  cases  of  difficulty  in 
different  shops,  most  of  them  amicably  and  without  much 
trouble.  Nearl}^  all  of  them  arose  from  attempts  on  the  part  of 
employers  to  cut  under  what  was  considered  a  fair  price ;  and  as 
the  chief  object  of  the  board  was  to  establish  and  maintain,  as 
nearly  as  possible,  a  uniform  price  for  labor  in  all  branches  and 
grades  of  work  in  shoemaking,  many  of  the  manufacturers 
looked  upon  the  plan  with  favor,  and  they  extended  to  it 
a  certain  moral  support,  though  they  appointed  no  committee 
to  act  in  conjunction  with  the  Crispin  board.  Still  the  smaller 
employers  especially  regarded  its  establishment  as  useful  and 
efficient  in  preventing  ruinous  competition  in  the  business. 

The  following  cases  illustrate  sufficiently  the  various  work  of 
the  board :  — 

A  reduction  in  the  prices  paid  for  trimming  and  edge  setting 
was  proposed  by  a  certain  firm.  This  was  resisted  by  the  work- 
men, who  made  complaint  to  the  board  of  arbitration.  It  was 
claimed  by  the  firm,  in  reply  to  questions  put  by  the  committee, 
that  they  had  at  considerable  expense  introduced  edge  setting 
machines,  Avhich  materially  lessened  the  labor,  and  their  use 
would  enable  the  men  to  earn  as  much  pay  notwithstanding  the 
proposed  reduction  of  price.  On  the  other  hand,  it  was  stated 
by  the  men,  that  the  machines  were  of  little  or  no  service  in  the 
way  of  saving  labor  or  facilitating  the  work. 

After  a  full  investigation,  the  board  arranged  the  prices  for 
work  with  edge  setting  machines  in  this  shop,  as  follows :  $1.65 
for  first,  11.50  for  second,  and  $1.25  for  third  quality.  This 
arrangement,  which  was  satisfactory  to  both  parties,  was  con- 
sidered to  be  a  settlement  of  the  difficulty  without  a  reduction. 

Complaint  was  made  to  the  board  that  certain  channellers 
had  been  discharged  from  a  shop  for  the  reason  that  they  had 
been  active  in  inducing  what  is  termed  a  boss  channeller  —  that 
is,  one  who  underlets  part  of  the  work  taken  out  by  him  —  to 
give  up  that  position.  On  the  report  of  a  committee  appointed 
to  investigate,  the  board  were  of  opinion  that  the  men  had 
been  discharged  without  reasonable  cause ;  and  they  therefore 
informed  the  manufacturer  that  no  Crispins  would  be  allowed 
to  take  their  places.  The  result  was,  that  the  men  who  had 
been  discharged  were  re-instated. 

In  another  shop  a  general  reduction  of  prices  was  proposed, 


100         INDUSTBIAL  CONCILIATION  AND  ARBITRATION. 


which  being  resisted  by  the  men,  the  subject  came  before  the 
board,  who  appointed  a  committee  to  wait  upon  the  employers, 
directing  the  men  in  the  mean  time  to  continue  work  as  usual. 
After  due  investigation  the  board  sustained  the  men  in  their 
resistance.  The  firm  retreated  from  their  position,  and  con- 
tinued to  pay  former  prices. 

The  channellers  in  another  shop  complained  to  the  board  that 
they  were  receiving  less  for  their  work  than  established  rates, 
and  that  they  had  requested  an  advance,  which  was  refused. 
A  committee  from  the  board  waited  upon  the  proprietor,  found 
the  facts  to  be  as  stated,  and  finally  induced  him  to  concede  the 
demand  of  his  workmen. 

A  certain  firm  proposed  to  reduce  the  prices  paid  for  trim- 
ming, edge  setting,  nailing,  and  shaving.  The  reduction  was 
resisted  by  the  men,  and  two  of  those  most  prominent  in  oppo- 
sition were  discharged.  The  board  of  arbitration  sustained  the 
operatives,  and,  after  several  meetings  with  their  employers, 
finally  induced  them  to  continue  to  pay  old  prices,  and  also  to 
re-instate  the  men  who  had  been  dicharged. 

Another  firm  proposed  to  make  a  general  reduction  on  certain 
kinds  of  work,  and  the  matter  came  before  the  board  for  adjudi- 
cation. After  considerable  discussion  the  board  prepared  a  list 
of  prices  for  the  shop,  which  the  firm  consented  to  adopt  for 
the  season. 

A  shoemaker  complained  to  the  board  that  he  had  been  dis- 
charged from  his  shop  without  valid  reason.  The  committee 
of  investigation  reported  that  he  was  discharged  for  making  an 
assault  on  the  foreman  of  the  shop.  The  action  of  the  propri- 
etor was  sustained  by  the  board,  and  the  complaint  dismissed. 

A  difficulty  arose  in  a  shop  with  regard  to  the  price  to  be  paid 
for  machine  lasting.  On  investigating  this  case  the  board  held 
that  lasting  machines  were  of  no  advantage  to  the  operator, 
there  being  no  saving  of  time  or  labor  by  their  use ;  that  there- 
fore the  prices  should  be  fixed  at  the  same  rates  as  were  paid 
for  hand  lasting.  This  was  finally  agreed  to  by  the  proprietor, 
who  also,  at  the  suggestion  of  the  board,  consented  to  employ 
his  hand  lasters  to  work  such  lasting  machines  as  he  should  de- 
cide to  use. 

In  the  same  shop,  a  McKay  machine  operator,  who  had  been 
discharged  for  seeking  an  advance  of  price,  was  re-instated  in 
his  position  by  the  exertions  of  the  board,  and  the  advance 
secured  to  him. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  101 

The  lasters,  trimmers,  edge  setters,  and  buffers  in  a  shop,  be- 
lieving that  they  were  working  for  lower  prices  than  were  paid 
elsewhere  for  similar  work,  demanded  an  advance.  On  investi- 
gation the  board  sustained  them  in  their  demand,  and  eventually 
succeeded  in  securing  for  them  the  prices  paid  in  other  shops 
for  the  same  grade  of  work. 

A  certain  firm  had  a  shop  in  Lynn,  and  also  one  in  another 
State.  The  hands  in  the  latter  struck  work  when  a  reduction 
of  prices  was  proposed  to  them  ;  and  complaint  was  subsequently 
made  to  the  board  of  arbitration  in  Lynn,  that  the  firm  was 
having  certain  parts  of  its  work  done  in  their  Lynn  shop,  and 
afterwards  sent  to  their  shop  out  of  the  State  to  be  completed. 
The  board,  on  investigating  the  case,  came  to  the  conclusion 
that  it  was  beyond  their  province  to  interfere  with  prices  paid 
in  other  places,  but  determined  to  insist  that  all  work  done  in 
Lynn  should  be  paid  for  at  the  established  rates.  The  firm 
finally  closed  the  shop  in  which  the  difficulty  arose,  and  now 
manufacture  all  their  goods  in  Lynn,  and  pay  the  established 
prices. 

Complaint  was  made  by  a  man,  on  account  of  his  discharge 
from  a  shop,  another  man  being  put  in  his  place.  In  this  case 
the  complaint  was  dismissed,  as  it  was  found,  on  investigation, 
that  the  proprietor  had  good  ground  for  his  action. 

The  men  in  a  certain  shop  complained  that  a  reduction  had 
been  made  in  their  pay.  The  board  succeeded  in  settling  the 
case  amicably  by  securing  an  advance  on  some  kinds  of  work, 
and  allowing  a  reduction  on  others. 

In  another  case  the  men  in  one  of  the  departments  of  a  shop 
demanded  an  advance,  which  the  proprietor  refused  to  pay; 
finally  the  men  struck  work,  and  left  the  shop  in  a  body.  This 
action  coming  to  the  knowledge  of  the  board  of  arbitration, 
they  informed  the  operatives  that  unless  they  resumed  work  at 
once,  their  places  would  be  filled  by  others,  as  it  was  a  flagrant 
violation  of  the  laws  of  the  order,  for  any  shop's  crew  to  inaug- 
urate a  strike  without  authority  from  the  board  of  arbitration. 
In  accordance  with  these  instructions,  the  men  quietly  returned 
to  their  places,  and  no  further  complaint  was  made. 

The  three-handed  teams  in  another  shop  demanded  an  ad- 
vance. The  proprietor  appeared  before  the  board,  and  explained 
his  position,  stating  his  entire  willingness  to  pay  regular  prices. 
Subsequently,  in  consultation  with  a  committee  from  the  board, 


102         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


an  advance  for  some  parts  of  the  work  was  made,  and  the 
trouble  was  amicably  settled. 

In  another  shop,  the  lasters  demanded  an  advance.  The 
matter  was  referred  to  the  board,  who  sustained  the  men  in 
their  demand;  and  the  firm  finally  agreed  to  it. 

In  another  case  the  board  sustained  the  lasters  in  resisting  a 
proposed  reduction,  and  the  firm  yielded,  and  continued  to  pay 
regular  prices. 

The  McKay  stitchers  in  a  certain  shop  complained  of  a  pro- 
posed reduction  of  their  pay  on  a  certain  grade  of  work.  The 
board  investigated,  and  concluded  that  the  men  should  be  sus- 
tained. This  decision  being  reported  to  the  proprietor,  he  re- 
ceded from  his  position,  and  continued  to  pay  the  former  price. 

A  man  complained  to  the  board  that  he  had  been  discharged 
from  employment  on  account  of  his  connection  with  the  order 
of  St.  Crispin.  The  case  was  investigated  and  dismissed,  it 
being  found  that  his  late  employer  had  other  and  sufficient 
reasons  for  his  action. 

The  McKay  nailers  in  a  certain  shop  demanded  an  advance 
of  price,  which  the  proprietor  refused  to  pay.  On  the  case 
being  investigated  by  the  board,  the  latter  was  sustained,  and 
the  men  ordered  to  continue  work  at  the  same  rates. 

Two  firms  complained  to  the  board  that  they  had  reason  to 
believe  they  were  paying  higher  prices  for  some  branches  of  work 
than  was  paid  by  a  certain  other  manufacturer,  and  requested 
the  board  to  investigate.  The  board  appointed  a  committee  to 
ascertain  the  facts ;  finding  these  to  be  as  stated,  they  reported 
accordingly.  A  new  list  of  prices  was  then  drawn  up ;  and  the 
board  of  arbitration,  in  consultation  with  the  three  firms  men- 
tioned, settled  the  difficulty  harmoniously  by  adopting  a  scale 
of  prices  as  nearly  as  possible  in  accordance  with  that  paid  in 
other  shops  for  similar  work. 

Complaint  was  made  to  the  board  by  a  manufacturer  that  he 
had  reason  to  believe  that  the  men  in  a  certain  shop  were  work- 
ing at  reduced  prices,  and  the  board  was  desired  to  inquire  into 
the  case.  A  committee  from  the  board,  accordingl}^  waited 
upon  the  proprietor  of  the  shop  mentioned  ;  they  subsequently 
reported  the  facts  to  be  as  alleged,  and  that  the  said  proprietor 
stated  to  them,  in  justification,  that  he  was  manufacturing  goods 
in  advance  of  orders,  and  could  not  afford  to  pay  full  prices 
under  such  circumstances ;  moreover,  that  the  men  working  for 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  103 


him  otherwise  would  be  without  employment.  The  board  held 
that  the  general  welfare  was  paramount  to  any  individual  inter- 
ests ;  that,  it'  a  reduction  in  prices  were  to  be  allowed  under  the 
plea  that  goods  were  being  manufactured  in  advance  of  the 
market,  it  would  establish  a  bad  precedent.  They  therefore 
informed  the  manufacturer  in  question  that,  as  others  of  his 
class  depended  upon  the  board  of  arbitration  to  maintain  an 
established  scale  of  prices,  he  must  either  consent  to  pay  regu- 
lar rates,  or  the  board  would  order  the  men  to  leave  his  shop. 
The  result  was  that  he  gave  up  making  goods  in  advance  of 
orders,  and  a  number  of  his  hands  were  discharged. 

In  another  shop  the  proprietor  informed  his  men  that  he 
intended  to  make  a  general  reduction  of  prices  on  all  parts  and 
grades  of  work,  and  that  for  the  future  he  proposed  to  make 
his  own  bargains  with  his  men  without  the  interference  of  the 
board  of  arbitration  or  any  other  outside  parties.  This  action 
was  opposed  by  the  workmen,  and  complaint  was  made  to  the 
board  of  arbitration.  A  committee  from  the  board  waited  upon 
the  manufacturer,  but  they  utterly  failed  to  move  him  from  his 
position.  The  board,  after  several  meetings  and  various  efforts 
to  compromise  the  difficulty,  finally  gave  the  men  leave  to  strike 
when  they  had  finished  such  work  as  they  had  in  hand.  Accord- 
ingly, each  man,  as  he  finished  his  job,  took  his  tools,  and  left 
the  shop.  Considerable  ill-feeling  was  engendered  in  this  case. 
Placards  from  the  manufacturer  were  posted  throughout  the 
city,  calling  for  workmen,  to  whom  the  highest  prices  were 
promised.  Immediately  under  these  might  be  seen  a  card  from 
the  board  of  arbitration  notifying  all  shoemakers  that  the  hands 
of  this  manufacturer  were  out  on  strike  to  resist  a  reduction  of 
pay,  and  warning  all  Crispins  to  keep  away  from  the  shop. 
This  condition  of  things  continued  about  two  weeks,  when  the 
board  of  arbitration  effected  a  compromise  by  allowing  a  reduc- 
tion for  some  parts  of  the  work,  and  securing  an  advance  on 
others.    The  men  then  returned  to  their  work. 

A  manufacturer  gave  notice  that  he  intended  to  make  a 
cheap  grade  of  shoes.  The  board  sent  a  list  of  prices  to  him 
for  such  shoes  as  he  proposed  to  make.  He  was  informed,  how- 
ever, that  he  would  be  expected  to  allow  the  old  prices  for  his 
other  work.  He  adopted  the  list,  and  agreed  to  the  conditions 
demanded  by  the  board. 

The  cases  which  we  have  given  sufficiently  exemplify  the 


104         INDUSTKIAL  CONCILIATION  AND  ARBITRATION. 

work  the  board  had  to  do.  They  illustrate  most  of  the  diffi- 
culties which  they  were  called  upon  to  arbitrate.  For  several 
months  the  duties  of  the  board  were  almost  continuous  and 
very  often  arduous  and  difficult,  involving  the  exercise  of  con- 
siderable prudence  and  patience.  Meetings  were  held  as  often 
as  required ;  generally  at  least  twice  a  week.  For  attending 
evening  meetings  the  members  received  no  compensation  ;  but 
when  they  were  obliged  to  spend  time  during  working  hours, 
they  were  allowed  thirty  cents  per  hour  for  the  time  actually 
spent  in  the  performance  of  their  duties. 

The  efforts  at  arbitration  and  conciliation  were  not  perma- 
nently successful :  not  the  less,  however,  did  the  work  accom- 
plished by  the  board  show  the  value  of  the  principle  ;  nor  is  it 
easy  to  estimate  the  extent  of  its  services  in  allaying  ill-feeling 
and  preventing  strife.  It  would  be  absurd  to  suppose  that  any 
body  of  men  could  discharge  such  duties  as  that  of  the  board 
of  arbitration,  and  escape  criticism.  However,  the  moderation, 
firmness,  and  fairness  which  the  members  of  this  board  brought 
to  bear  upon  the  various  cases  referred  to  them  for  adjudication, 
prevented  many  strikes,  and  secured  for  their  decisions  the 
respect  and  confidence  of  their  fellow  workmen,  and,  to  a  great 
extent,  also  that  of  the  manufacturers. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  105 


Paet  III. 


INDUSTEIAL  CONCILIATION  AND  AEBITEATION  IN  OTHEE  STATES. 


The  legislature  of  1880  passed  the  following  resolve,  chapter 
48,  relative  to  Industrial  Arbitration  and  Conciliation :  — 

Resolved,  That  the  Bureau  of  Statistics  of  Labor  is  hereby  directed  to 
make  a  full  investigation  as  to  the  practical  working  of  the  principles  of 
industrial  conciliation  and  arbitration,  and  to  consider  what  legislation,  if 
any,  is  necessary  to  enable  employers  and  employes  in  this  State  to  secure 
the  benefit  of  such  principles,  and  to  report  the  results  to  the  next  legisla- 
ture.   [Approved  April  IS,  1880.'] 

In  taking  the  preliminary  steps  to  make  the  investigation 
ordered  by  the  legislature,  we  found  that  Mr.  Joseph  D.  Weeks, 
whose  account  of  conciliation  and  arbitration  in  England  we 
have  given  in  Part  I.,  had  already  collected  the  very  data  we 
were  in  search  of,  but  which  had  not  been  used  by  him.  We 
were  very  fortunate  in  making  arrangements  with  Mr.  Weeks, 
to  give  the  public  the  use  of  the  very  full  data  in  his  hands, 
through  a  report  to  this  office  which  we  now  reproduce. 

This  report  presents  the  history  of  those  wonderful  labor 
struggles  in  the  great  iron  and  coal  producing  States,  inaugu- 
rated perhaps  for  selfish  ends,  but  which,  in  time,  will  result  in 
the  adjustment  of  difficulties  on  the  basis  of  justice  and  equity. 
Beside  these  struggles,  an  account  is  given  of  a  most  interest- 
ing experience  among  cigar  makers  in  New  York  City. 

Mr.  Weeks's  report  is  most  heartily  commended  to  the  careful 
consideration  of  the  manufacturers  and  employes  of  this  State. 
From  it  we  shall  find  that  there  are  methods  which  can  be 
applied  in  the  settlement  of  industrial  disputes ;  these  we  shall 
endeavor  to  point  out  at  the  close  of  this  Part. 

Mr.  Weeks's  report  is  as  follows  :  — 

I  have  the  honor  to  transmit  herewith  an  account  of  such 
attempts  at  arbitration  in  disputes  between  employers  and  em- 

14 


106         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


ployed  in  this  country,  concerning  which  I  have  been  able  to 
gain  any  information.  I  have  also  included  an  account  of  the 
action  of  conference  and  conciliation  committees  in  the  iron 
trade  at  Pittsburgh,  regarding  this  as  a  type. 

It  will  be  noticed  that  I  have  in  most  cases  given  some 
account  of  the  condition  of  the  trade  at  the  time  of  the  attempts 
at  arbitration,  as  well  as  of  the  causes  that  led  to  such  condi- 
tion, believing  that  this  was  necessary  to  an  understanding  of 
the  subject. 

Boards  or  courts  of  arbitration  and  conciliation,  for  the  settle- 
ment of  certain  or  all  disputes  or  differences  between  employers 
and  employed,  have  existed  generally  in  the  industries  of  France 
and  Belgium,  since  early  in  this  century,  and  in  England,  in 
certain  trades,  for  t\A^nty  years.  The  constitution  and  the 
methods  of  these  boards,  and  the  success  that  has  attended 
them,  can  be  learned  in  detail  from  the  report  of  the  Massa- 
chusetts Bureau  of  Statistics  of  Labor  for  1877,  or  from  a  report 
of  an  investigation,  with  their  practical  workings,  made  to  the 
Governor  of  Pennsylvania  in  1879,  by  the  writer.^  It  is  suf- 
ficient here  to  remark,  that  in  France,  in  1878,  there  were 
brought  before  these  boards,  the  Conseils  des  P rudliommes  ^ — 
Avhich  are  established  at  important  trade  centres,  and  which  are 
quasi-judicial  bodies  with  legal  sanctions  for  their  awards, — 
35,046  cases,  of  which  25,834  were  heard  in  private  without  a 
formal  trial,  and  71  per  cent  settled  without  a  public  hearing. 
Of  the  entire  number  of  cases,  21,368  were  relative  to  wages, 
4,733  to  dismissals,  and  1,795  to  matters  relative  to  apprentices. 

In  England,  where  these  boards  are  purely  voluntary,  without 
any  legal  existence  or  sanction  to  their  decisions,  their  success 
in  removing  causes  of  difference  between  employer  and  em- 
ployed, or  in  settling  disputes  should  they  arise,  has  been  most 
marked  in  those  trades  in  which  the  principle  has  been  fairly 
tried.  In  the  hosiery  trade  of  Nottingham,  in  which  a  board 
has  been  in  existence  for  twenty  years,  there  has  been  no  general 
strike  since  its  organization.  In  the  manufactured  iron  trade  of 
the  North  of  England,  where  the  board  has  a  history  for  ten 
years,  it  is  also  true  that  in  that  time  there  has  been  no  gen- 
eral strike  ;  though  in  both  of  these  trades,  prior  to  the  estab. 
lishment  of  these  boards,  strikes  and  other  labor  troubles  were 
exceedingly  frequent,  and  though,  further,  the  nature  of  these 

1  See  Part  I.  of  this  pamphlet. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


107 


trades  is  such  as  to  render  the  settlement  of  questions  of  wages 
extremely  difficult. 

'  In  this  country  formal  arbitration  and  conciliation,  in  the 
sense  that  these  words  are  understood  in  England,  has  a  very 
meagre  history.  The  cases  are  very  few  in  which  boards  have 
been  organized  on  a  basis  similar  to  the  English  boards,  and 
formal  arbitration  attempted ;  and  in  only  a  single  instance 
have  these  boards  outlived  the  first  attempt  to  settle  a  dispute 
or  difference. 

Preliminary  to  an  account  of  these  attempts,  it  is  necessary 
to  define  arbitration  and  conciliation,  not  only  for  a  clearer  un- 
derstanding of  the  subject,  but  to  indicate  the  limitations  of  our 
inquLi-y  into  the  history  of  arbitration  and  conciliation  in  this 
country. 

Industrial  arbitration  is  both  the  name  of  a  principle,  and  the 
specific  application  of  that  principle.  As  a  principle,  arbitration 
is  a  method  of  settling  disputes  or  differences  between  employers 
and  employed,  by  a  reference  of  the  matters  at  issue  to  a  board 
composed  of  representatives  of  each  of  the  two  parties  to  the 
question,  the  representatives  of  each  being  elected  or  appointed 
by  the  parties  themselves ;  the  board  to  have  power  to  hear 
testimony  and  decide  the  question,  or,  in  the  event  of  a  failure 
of  the  board  to  decide,  with  power  to  call  in  one  or  more  parties, 
whose  decision  in  the  case  shall  be  final,  and  binding  on  both 
parties  represented  in  the  board. 

An  application  of  this  principle  to  a  specific  case  would  also 
be  termed  arbitration. 

It  will  be  noted,  that  this  definition  confines  arbitration  to 
those  cases  in  which  both  parties  to  the  dispute,  or  difference, 
or  question,  have  an  equal  representation;  not  as  advocates 
or  counsel,  but  as  members  in  the  board,  or  committee,  or  court, 
by  whatever  name  it  is  called,  which  decides  the  matter  in 
question,  this  representation  being  appointed  or  elected  by  the 
party  which  it  represents.  This  is  the  meaning  of  the  word  in 
England,  where  the  practice  of  arbitration  for  twenty  or  more 
years  has  given  a  definition  to  the  word  that  should  be  accepted 
as  final.  I  am  thus  careful  in  defining  arbitration,  as  the  term 
has  been  applied  to  a  practice  in  this  country,  which,  however 
commendable  it  may  be  in  itself,  is  not  arbitration.  This  is  the 
custom  that  exists  in  some  of  the  labor  organizations,  of  choos- 
ing a  committee,  composed  entirely  of  the  members  of  the 


108         INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 

organization,  that  is  termed  an  arbitration  committee,  before 
which,  all  or  certain  specified  disputes  between  employers  and 
employed  are  brought.  In  some  cases  the  employer  is  allowed 
or  asked  to  appear  before  this  committee  to  state  his  case  ;  and 
in  others  the  committee  visits  the  works,  and  examines  both 
parties  ;  but  in  either  event  the  decision  rests  with  a  body  com- 
posed of  but  one  party  to  the  dispute,  and  a  body  in  whose  forma- 
tion the  other  party  had  no  voice.  Whatever  such  a  principle 
may  be  called,  it  is  not  arbitration.  It  is,  no  doubt,  a  very  com- 
mendable proceeding  to  endeavor  to  investigate  fairly  both  sides 
of  a  dispute,  rather  than  rush  headlong  into  a  strike  ;  and  there 
is  no  doubt  but  that  in  such  cases  the  board  or  committee 
honestly  endeavor  to  arrive  at  a  just  conclusion ;  but,  notwith- 
standing this,  the  act  and  the  decision  are  not  those  of  a  board 
of  arbitration.  In  a  word,  it  is  as  impossible  for  one  party  to  a 
dispute  to  arbitrate,  as  it  is  for  one  man  to  fight  a  duel.^ 

Industrial  conciliation  differs  widely  from  industrial  arbitra- 
tion, though  the  object  of  both  is  the  same,  —  the  prevention 
and  settlement  of  disputes  and  differences  between  employers 
and  employed.  Conciliation  is  not  formal ;  it  does  not  sit  in 
judgment.  It  does  not  necessarily  imply  a  board  or  court, 
although  the  best  results  follow  when  the  conciliation  is  system- 
atic ;  under  the  influence,  direction,  and  authority  of  a  board. 
Conciliation  may  be  the  act  of  conference  committees,  formed 
for  the  purpose  of  settling  a  given  dispute ;  but,  however  the 
result  is  reached,  it  is  by  the  friendly  offices  of  others,  or  by  the 
parties  agreeing  between  themselves  without  the  intervention  of 
an  umpire  or  arbitrator  with  power  to  judge  and  decide.  While 
there  has  been  little  or  no  conciliation  in  this  country,  such  as 
exists  in  the  trades  of  England,  that  is,  systematic  through  the 
medium  of  permanent  committees  organized  for  the  purpose  of 
conciliation,  there  are  certain  forms  of  conciliation  that  have  a 
history,  that  if  it  could  be  told  would  be  the  brightest  and  most 
hopeful  chapter  in  the  industrial  history  of  our  country.  Un- 
fortunately for  the  advance  of  mutual  confidence  and  sympathy 
between  the  two  parties  to  labor  contests,  these  examples  of  con- 
ciliation, for  the  most  part,  never  come  to  the  knowledge  of  the 
world.  They  are  worked  out  in  the  quiet  of  the  counting-house 
and  office,  where  employer  and  employed  meet  as  equals,  and 

1  An  account  of  a  very  successful  committee  of  the  nature  indicated  will  be 
found  in  Part  II.  of  this  pamphlet. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  109 


as  man  should  meet  man,  and  then  and  there  in  all  kindliness 
and  good  feeling  settle  their  differences  before  they  become  dis- 
putes. If  the  acts  of  these  counting-rooms  could  become  the 
rule  of  action  in  all  our  land,  it  would  be  a  blessing  to  industry 
whose  value  could  not  be  estimated. 

There  is,  however,  a  form  of  conciliation  that  has  been  prac- 
tised in  centres  where  certain  industries  have  gathered,  of  w^hich 
we  have  the  history.  A  committee  representing  the  organized 
labor  in  these  industries  has  met  a  similar  committee  represent- 
ing the  manufacturers  in  the  same  industr}^ ;  and  between  them  ^ 
they  have  agreed  upon  future  rates  of  wages,  and  settled  other 
differences.  This  is  notably  the  case  in  the  iron  industries  at 
Pittsburgh.  As  the  methods  adopted  in  these  industries  may 
be  taken  as  a  type,  a  very  full  account  of  the  procedure  and 
results  will  obviate  the  necessity  of  further  examples  of  this 
method  of  conciliation. 

Conciliation  in  the  Pittsburgh  Iron  Trade. 

The  city  of  Pittsburgh  and  its  immediate  neighborhood  is  at 
present,  and  has  been  for  years,  the  chief  centre  of  the  heavy 
iron  trade  of  the  country.  In  no  district  in  the  world,  with 
the  possible  exception  of  that  about  Middlesboro'  in  England, 
certainly  in  no  district  in  this  country,  has  the  iron  and  steel  in- 
dustry grown  with  such  rapidity  during  the  last  thirty  years  as 
at  Pittsburgh.  This  rapid  growth  brought  together  a  large  body 
of  trained  and  skilled  workmen,  chiefly  from  the  iron  working 
centres  of  England,  Scotland,  and  Wales.  Hon.  Miles  S.  Hum- 
phreys, the  present  chief  of  the  Bureau  of  Statistics  of  Pennsyl- 
vania, has  given  in  his  report  for  1878-79  an  admirable  account 
of  the  attempts  at  conciliation  in  the  iron  rolling  mill  industry 
of  this  city,  of  which  we  make  liberal  use  in  this  account.  Mr. 
Humphreys  can  sa}^  with  JEneas,  "  that  all  of  this  he  saw,  and 
most  of  which  he  was,"  for  he  was  for  years  a  workman  in  the 
iron  mills,  and  the  founder  and  first  president  of  the  United 
Sons  of  Vulcan,  the  organization  which  represented  the  work- 
men in  these  conferences. 

In  sketching  the  history  of  the  United  Sons  of  Vulcan,  and 
the  conditions  of  the  iron  trade  relative  to  labor  that  preceded 
and  attended  its  organization,  Mr.  Humphreys  states,  — 

"  The  first  great  strike  occurred  while  the  iron  business  was  compara- 
tively yet  in  its  infancy,  in  1849,  when  the  manufacturers  attempted  and 


110         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


finally  succeeded  in  reducing  puddling,  below  six  dollars  per  ton.  This 
memorable  strike  commenced  upon  the  20th  of  December,  1819,  and  ended 
about  the  1st  of  the  following  May,  the  puddlers  resuming  work  at  S$4.50  per 
ton.  While  the  manufacturers  succeeded  in  effecting  a  reduction  in  the 
price  of  puddling,  the  result  left  the  men  greatly  depressed,  dissatisfied,  and 
discontented,  many  scattering  to  new  fields  of  operation  throughout  the 
West.  The  ten  following  years  witnessed  many  petty  strifes,  as  the  men, 
at  every  available  opportunity,  would  seek  to  redress  some  real  or  imaginary 
wrong,  while  manufactui^ers,  in  turn,  when  prices  tended  downward,  would 
retaliate  in  an  effort  to  save  fleeting  profits  through  a  reduction  of  wages,  as 
well  as  to  alter  the  rules  forced  upon  them  in  the  times  of  high  prices  when 
they  were  powerless  to  resist.  To  such  an  extent  did  wages  decline,  that 
during  1857  and  up  to  1860,  puddling  ranged  from  $3.50  to  $1  per  ton,  the 
lower  price  being  paid  in  cash,  while  the  higher  was  in  part  or  in  whole 
paid  in  store  goods." 

In  April,  1858,  a  few  of  the  men  connected  with  the  puddling 
department  of  the  mills  assembled,  and  organized  a  trades  union 
under  the  name  of  the  "  United  Sons  of  Vulcan." 

The  fact  of  the  organization  was  kept  a  profound  secret 
through  fear  of  discharge,  and  at  last  operations  were  suspended 
until  a  more  favorable  opportunity.  This  came  in  1860-61. 
The  growth  of  the  organization  was  slow  at  first ;  but  it  soon 
showed  signs  of  vigorous  life,  and  in  1863  its  power  began  to 
be  felt,  and  the  union  recognized.  The  great  fluctuations  of  iron 
during  the  war  led  to  repeated  demands  for  increase  in  wages. 
Finally  a  general  conference  of  representative  men  from  each 
side,  employer  and  employed,  suggested  itself,  through  whom 
wages  were  to  be  fixed,  and  difficulties  avoided,  while  its  action 
and  conclusion  would,  in  common,  bind  all.  The  fluctuations, 
requiring  repeated  conferences,  began  to  develop  the  propriety 
as  well  as  the  necessity  of  agreeing  upon  some  general  plan 
which  would  obviate  frequent  meetings,  and  yet  fix  wages  in 
accordance  with  the  price  of  iron.  With  that  end  in  view, 
committees  of  conference  were  appointed ;  and,  after  repeated 
meetings,  finally  agreed,  on  the  thirteenth  day  of  February, 
1865,  upon  a  scale  of  prices  to  be  paid  for  boiling  pig  iron  based 
on  the  manufacturers'  card  of  prices. 

An  original  copy  of  this  scale,  in  the  possession  of  the  writer, 
reads  as  follows  :  — 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  Ill 


MEMORAXDUM  OF  AGREEMENT 

Made  iJiis  tJdrleenth  day  of  February^  1SG5,  between  a  CommiUee  of  Boilers  and 
a  Commitlee  from  the  Iron  Manufacturers,  appointed  to  fx  a  scale  of  prices  to 
he  paid  for  Boiling  Pig  Iron,  based  on  the  Manufacturers^  Card  of  Prices  ; 
it  being  understood  either  party  shall  have  the  right  and  privilege  to  terminate 
this  agreement  by  giving  ninety  days^  notice  to  the  other  parly,  and  that  there 
shall  be  no  deviation  ivilhout  such  notice. 


When  the  manufacturers'  card  of  prices  are  at  the  rates  named  below,  the 
price  for  boiling  shall  be  at  the  prices  opposite  per  ton  of  2,240  pounds. 


Maxcfactubeks. 

BOILEBS. 

Mancfactukees. 

Boilers. 

8i  cents  per  pound  . 
8|  "... 
8      "  "... 
7|    "  "... 
7|  and  7^  "... 
7  and  (if  "... 
Gh  and  ()|  "... 
and  5|  "... 

80  00 
8  75 
8  50 
8  25 
8  00 
7  50 
7  00 
6  50 

5i  and  5J  cents  per  pound 

5"  and  4¥     "  " 

4*  and  4|  " 

4^  and  :^  " 

3iand3^  " 

3'  and  '3  " 

2i 

86  00 
5  75 
5  50 
5  00 
4  75 
4  50 
4  00 

This  is  probably  the  first  important  attempt  at  conciliation  in 
this  country.  It  is,  at  least,  the  first  one  that  involved  such 
large  interests,  and  is  probably  the  earliest  example  of  a  sliding 
scale  in  the  industries  of  the  country,  antedating  four  years  the 
basis  arrangement  in  the  anthracite  regions. 

The  operation  of  this  scale  was  of  short  duration.  The 
price  of  iron  fell  from  seven  and  a  half  cents  per  pound  in 
February  to  four  cents  in  July;  and  the  wages  for  boiling  fell 
in  proportion.  The  men  gave  the  ninety  days'  notice  to  ter- 
minate the  scale.  At  the  expiration  of  the  notice  the  price 
of  boiling  had  risen  to  six  dollars  under  the  scale ;  but  the  men 
demanded  eight  dollars  without  a  scale,  and  received  it.  This 
price  prevailed  to  near  the  close  of  1866,  when  the  puddlers 
demanded  an  advance  to  nine  dollars,  which  was  conceded, 
though  under  protest,  as  the  other  advances  had  been.  This 
concession,  however,  was  not  of  long  standing;  for  soon  the 
manufacturers  gave  evidence  of  unwillingness  to  continue  the 
prices,  culminating  in  a  notice  of  reduction  to  seven  dollars  per 
ton.  In  this  notice  all  the  manufacturers,  with  but  very  few 
exceptions,  united,  not  only  in  Pittsburgh,  but  in  all  iron  works 
in  the  adjacent  country.  The  puddlers  refused  to  accept  the 
reduction ;  and,  as  a  consequence,  a  lock-out  was  inaugurated 


112        INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


wliich  extended  from  December,  1866,  to  the  middle  of  May, 
1867,  all  the  mills,  with  two  or  three  exceptions,  remaining  idle 
all  that  time.  This  lock-out  terminated  in  the  manufacturers 
paying  the  old  wages. 

Though  the  manufacturers  had  resumed  work,  it  was  evident 
that  they  could  not  and  would  not  long  pay  this  price ;  and 
the  "  Sons  of  Vulcan "  determined  to  endeavor  to  again 
secure  the  adoption  of  a  sliding  scale.  A  circular  was  adopted, 
and  addressed  to  each  iron  firm  in  the  city,  by  the  committee 
of  officials  of  the  association,  suggesting  a  conference  with  the 
manufacturers,  with  a  view  of  adopting,  if  possible,  another 
scale  regulating  the  wages  paid.  The  circular  was  responded 
to  by  the  manufacturers  affirmatively.  The  committees  came 
together,  and  after  a  number  of  meetings  agreed,  on  the  twenty- 
third  day  of  July,  1867,  upon  a  scale  of  prices,  as  follows :  — 

MEMORANDUM  OF  AGREEMENT 

Made  this  tioenty-tliird  day  of  July,  1867,  between  the  Committees  of  Boilers 
and  Manufacturers,  to  wit:  — 

That  nine  dollars  per  ton  shall  be  paid  for  boiling  iron  until  the  seven- 
teenth day  of  August,  1867.  From  that  time  until  the  fifteenth  day  of 
September,  eight  dollars  shall  be  paid. 

After  latter  date  the  following  scale  shall  be  operative:  — 

Iron.  Boiling. 

5  cents  card  rates                                                 .       .  $8  00 

4f  "  "   7  75 

4i  "  "  "   7  50 

4  "    7  25 

4  "  "    7  00 

3f  "  "   6  75 

3^  "  "  "   6  50 

3i  "  "   6  25 

3  "    6  00 

Being  twenty-five  cents  per  ton  reduction  or  advance  for  each  change  of 
one-qtiarter  of  a  cent  per  pound  on  card  rates.  Either  party  to  this  arrange- 
ment can  terminate  the  same  by  giving  thirty  days'  notice  to  the  other  party. 

It  is  further  understood  that  immediate  steps  shall  be  taken  by  both 
parties,  following  said  notice,  to  meet,  and  endeavor  to  arrange  the  differ- 
ence, and  settle  the  difficulty  which  occasioned  said  notice. 

This  scale,  with  a  modification  that  allowed  of  an  advance 
by  tenths  of  a  cent  per  pound  instead  of  by  quarters  of  a  cent, 
remained  in  force,  and  regulated  the  price  of  wages  for  boiling 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  113 


iron  for  seven  years.  It  will  be  noted  that  there  is  no  provision 
in  the  scale  when  the  card  rate  is  below  three  cents.  As  the 
card  rate  approached  this  figure,  the  manufacturers  asked  for 
a  conference,  with  a  view  to  arrange  for  a  price  for  boiling 
when  the  card  reached  this  point,  or  went  below  it ;  claiming, 
which  was  not  denied,  that  it  was  an  understanding  at  the  time 
of  the  adoption  of  the  scale,  that  it  should  be  revised  when 
iron  reached  three  cents  per  pound. 

The  first  conference  was  held  Nov.  7,  1874,  when  the  manu- 
facturers gave  the  required  thirty  days'  notice  to  terminate 
the  agreement,  coupled  with  the  proposition  to  effect  "  a  reduc- 
tion of  one  dollar  per  ton  on  a  three  cent  card  and  all  below 
that  figure,  and  at  the  same  time  providing  for  an  extension 
of  their  card  rates  from  three  cents  to  two  and  a  half  cents. 
During  the  thh^ty  days,  and  before  the  notice  had  expired,  a 
number  of  meetings  were  held,  at  which  the  men  proposed  a 
reduction  of  fifty  cents  per  ton  on  a  three  cent  card,  wages, 
however,  to  extend  no  lower,  should  the  price  list  be  reduced. 
This,  however,  the  manufacturers  refused.  On  the  5th  of 
December,  1874,  they  held  their  last  meeting,  adjourning  with 
the  understanding  that  they  agree  to  disagree."  Then  com- 
menced the  memorable  strike  which  kept  the  many  mills  of 
Pittsburgh  in  an  almost  complete  state  of  idleness,  especially 
the  puddling  departments,  during  the  entire  winter.  In  March 
the  manufacturers  proposed  to  arbitrate ;  but  the  men  at  that 
late  day  refused.  Matters  continued  without  material  change 
until  the  15th  of  April,  1875,  when,  at  a  meeting  of  the  manu- 
facturers, it  was  decided  to  resume  at  $5.50,  iron  having  fallen 
to  two  and  a  half  cents  per  pound.  This  ended  the  strike  ;  and 
it  also  ended  all  agreement  between  the  manufacturers  as  a 
body  and  the  puddlers  as  a  body,  each  manufacturer  signing 
the  scale  for  himself,  though  the  scale  signed  by  each  was  the 
same.  In  a  word,  though  attempts  have  been  made  each  year 
since  to  reach  an  agreement  by  committees,  conciliation  in 
arranging  a  scale  for  boiling  ended  with  the  strike  of  1874-75. 

In  other  classes  of  the  iron  work,  however,  scales  had  been 
adopted  that  are  still  in  force.  Several  classes  of  these  workers 
had  unions  separate  from  the  "  Sons  of  Vulcan." 

After  the  long  puddlers'  strike  of  1874,  each  organization 
began  to  agitate  the  propriety  of  amalgamating  into  one  grand 
general  organization.     The  agitation  at  last  ended  in  each 

15 


114         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


organization,  at  their  annual  conventions  of  1875,  appointing 
committees  who  were  authorized  to  meet  during  the  year  to 
devise  and  prepare  plans  looking  to  the  federation  of  all  the 
associations,  and  to  report  to  the  next  annual  conventions, 
which  were  all  arranged  to  meet  the  following  year  at  Pitts- 
burgh, at  which  time  the  several  associations  were  merged  into 
one,  under  the  distinctive  title  of  the  "  Amalgamated  Associa- 
tion of  Iron,  Steel,  and  Tin  Workers  of  the  United  States." 

A  curious  feature  of  the  history  of  this  association  since  the 
amalgamation  is,  that,  though  it  fails  as  a  body  to  arrange  a 
scale  for  boiling  with  the  manufacturers,  as  a  body  it  has 
arranged  scales  covering  most  of  the  other  important  classes 
of  skilled  work  in  the  rolling  mills.  A  number  of  the  scales 
now  in  force  in  the  Pittsburgh  mills  are  appended  to  show  their 
character  and  scope. 


Made  this  second  day  of  April,  1872,  between  a  Committee  of  Guide  Rollers  and 
a  Committee  from  the  Iron  Manufacturers,  appointed  to  fx  a  Scale  of  Prices 
to  be  paid  for  Rolling  Iron,  based  on  the  Manufacturers^  Card  of  Prices;  it 
being  understood  that  either  party  shall  have  the  right  and  privilege  of  terminat- 
ing this  agreement  by  giving  sixty  days^  notice  to  the  other  party,  but  there  shall 
be  no  deviation  without  such  notice  and  a  conference. 

It  is  agreed  that  the  base  price  at  a  four  and  five-tenths  manufacturers' 
card  shall  be  the  straight  four  dollars  rate  for  guide  rolling,  with  two  (2) 
per  cent  additional  for  each  one- tenth  advance  of  manufacturers'  card,  and 
two  (2)  per  cent  decline  for  each  deduction  of  one-tenth  (Jq)  from  manu- 
facturers' card. 


GUIDE  MILL  ROLLING. 


MEMORANDUM  OF  AGREEMENT 


Committee  of  Rollers. 
John  E.  Small, 
John  Da  vies. 


Committee  of  Manufacturers. 
James  I.  Bennett, 
Charles  H.  Zug, 
B.  F.  Jones, 
William  Varnum, 
A.  E.  W.  Painter, 
James  C.  Lewis, 
H.  W.  Oliver,  Jun. 


Samuel  Carson, 
James  H.  Riley, 
Louis  O'Donnell, 
Robert  Moore. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  115 


BAR  AND  NAIL  PLATE  ROLLING  AND  HEATING 
AGREEMENT. 

MEMORANDUM  OF  AGREEMENT 

Made  this  seventeenth  day  of  October,  1879,  between  a  Committee  of  Bar  and 
Nail  Mill  Rollers  and  Heaters,  and  a  Committee  from  the  Iron  Manufac- 
.  turers,  appointed  to  fx  a  Scale  of  Prices  to  be  paid  for  Rolling  and  Heat- 
ing Iron,  based  on  the  Manufacturers^  Card  of  Prices;  it  being  understood 
that  either  party  shall  have  the  right  and  privilege  of  terminating  this  agreement 
by  giving  sixty  days^  notice  to  the  other  party,  but  that  there  shall  be  no  devia- 
tion without  such  notice  and  a  conference. 

It  is  understood  and  agreed  that  in  mills  running  on  specialties,  separate 
contracts  may  be  made  between  the  manufacturers,  rollers,  and  heaters, 
without  interfering  with  this  arrangement. 

When  the  manufacturers'  card  of  prices  are  at  the  rates  named  below, 
the  price  of  rolling  and  heating  shall  be  at  the  prices  opposite,  per  ton 
(2,240  lbs.).    Nail-plate  rolling  ten  cents  per  ton  less  than  bar  rolling. 


CAED  RATES.  RoUingand 
1  Heating. 

Card  Rates. 

Rolling  and 
Heating. 

2t'o  cts  

-      .       .       .  . 

2  \  -      .       .       .  . 

iio  .... 

3  "...  . 

3tV  -      .       .       .  . 
3^  "      .       .       .  . 

65  cts. 
661  u 
68  " 
691  u 
71  " 
72i  - 
74  " 
76  " 

cts  

3^  "  .  .  .  . 
3iV  -  .  .  .  . 
3tV  -     .       .       .  . 

3tV 

3^  -  .  .  .  . 
3iV  -  .  .  .  . 
4      "  . 

78  cts. 
80  " 
82  " 
85  " 
88  " 
91  " 
94  " 
97  " 

Committee  of  Rollers  and  Heaters. 
James  Penny, 
John  L.  Mills, 
MoRQAN  Z.  Evans, 
John  Krepps, 
Charles  P.  Bowman, 
Peter  Straub, 
Joseph  Bishop. 


Committee  of  Manufacturers. 
B.  F.  Jones, 
J.  R.  Wilson, 
Charles  L.  Fitzhugh, 
DavId  B,  Oliver, 
A.  F.  Keating. 


116         INDUSTRIAL  CONCILIATION  AND  AEBITEATION. 


SCALE  OF  PRICES  FOR  KNOBBLING. 

MEMORANDUM  OF  AGREEMENT 

Made  at  Pittsburgh  this  twenty-third  day  of  February,  1880,  between  a  Committee 
of  the  Amalgamated  Association  of  Iron  and  Steel  Workers,  and  a  Committee 
of  Iron  Manufacturers,  appointed  to  fx  a  Scale  of  Prices  to  be  paid  for 
Knobbling,  based  on  the  Western  Iron  Association^ s  Card  of  Prices ;  it  being 
understood  that  either  party  shall  have  the  right  and  privilege  of  terminating 
this  agreement  by  giving  sixty  days^  notice  to  the  other  party,  but  that  there  shall 
be  no  deviation  without  such  notice  and  a  conference. 


When  the  Western  Iron  Association's  card  of  prices  is  at  the  rates  named 
below,  the  price  of  knobbling  shall  be  at  the  prices  opposite,  per  ton 
(2,404  lbs.). 


Refined 

Pig 

Eeflned 

Pig 

Metal. 
Per  Ton, 

Associa- 

Scrap. 

Iron. 
Per  Ton, 

Metal. 
Per  Ton, 

Associa- 

Scrap. 

Iron. 
Per  Ton. 

tion's 

Per  Ton, 

tion's 

Per  Ton, 

Casd. 

2.464. 

Card. 

2.464. 

2,464. 

2,464. 

2,464. 

2,464. 

Bar  Iron. 

Bar  Iron. 

$4 

70 

$6 

11 

$7  52 

4_8_ 

6 

42 

8  21 

10  34 

4 

80 

6 

22 

7  68 

4-^ 
4V 
.ij 
h% 

6 

52 

8 

33 

10  50 

4 

89 

6 

34 

7  83 

6 

62 

8 

45 

10  66 

4 

99 

6 

45 

7  99 

6 

72 

8 

57 

10  82 

5 

08 

6 

57 

8  14 

4-7- 

6 

82 

8 

69 

10  98 

5 

17 

6 

68 

8  30 

4i° 
ill 

6 

92 

8 

81 

11  14 

5 

27 

6 

80 

8  45 

7 

02 

8 

93 

11  30 

5 

37 

6 

91 

8  61 

7 

12 

9 

05 

11  46 

5 

46 

7 

02 

8  76 

7 

22 

9 

17 

11  62 

5 

56 

7 

13 

8  92 

7 

32 

9 

29 

11  78 

5 

65 

7 

24 

9  07 

7 

42 

9 

41 

11  94 

5 

75 

7 

37 

9  23 

7 

52 

9 

53 

12  10 

5 

84 

7 

49 

9  38 

7 

62 

9 

65 

12  26 

5 

93 

7 

61 

9  55 

7 

72 

9 

77 

12  42 

6 

02 

7 

73 

9  71 

7 

82 

9 

89 

12  58 

6 

12 

7 

85 

9  86 

7 

92 

10  01 

12  74 

6 

22 

7 

97 

10  02 

8 

02 

10 

13 

12  90 

%0 

6 

32 

8 

09 

10  18 

1 

8 

12 

10 

25 

13  06 

This  scale  not  to  go  below  two  and  a  half  cents,  Western  Iron  Associa- 
tion's card.  Knobbler  to  pay  his  helper  one-third  the  above  price  for  refined 
iron  and  pig  metal. 


Com.  of  Manuf  Com.  of  Amal.  Asso.  of  Iron  and  Steel  Workers. 

G.  F.  McCleane,  T.  C.  Crawford, 

W.  D.  Wood,  Mark  Lewis, 

P.  XI.  Laufman,  •              George  G.  Moyers, 

r.  C.  Kirkpatrick,  John  Jarrett, 

W.  C.  Cronemeyer.  William  Martin. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  117 


SCALE  OF  PRICES  FOR  ROLLING  ON  SHEET  AND 
JOBBING  MILLS. 

MEMORANDUM  OF  AGREEMENT 

Made  at  Pittsburgh  this  first  day  of  March,  1880,  between  a  Committee  of  the 
Amalgamated  Association  of  Iron  and  Steel  Workers,  and  a  Committee  of  Iron 
Manufacturers,  appointed  to  fix  a  Scale  of  Prices  to  be  paid  for  Rolling,  on  a 
Sheet  and  Jobbing  Mill,  based  on  the  Western  Iron  Association's  Card  of 
Prices  ;  it  being  understood  that  either  party  shall  have  the  right  and  privilege 
of  terminating  this  agreement  by  giving  sixty  days'*  notice  to  the  other  party,  but 
that  there  shall  be  no  deviation  without  such  notice  and  a  conference. 

It  is  agreed  that  at  a  three  and  a  half  (30  cents  Iron  Association  card  the 
prices  for  rolling  on  a  sheet  and  jobbing  mill,  per  ton  of  2,240  lbs.,  shall  be 
as  follows,  with  two  (2)  per  cent  additional  for  each  one-tenth  advance  of 
association's  card,  and  two  (2)  per  cent  decline  for  each  deduction  of  one- 
tenth  (Jq)  from  association's  card. 


Prices  for  Rolling 

Prices  for  Rolling 

Gauges. 

on  a  3i  Card,  per 

Gauges. 

on  a  3i  Card,  per 

Ton,  2,240  lbs. 

Ton,  2.240  lbs. 

No.  8  and  heavier 

$4  50 

Nos.  25  and  26  . 

$11  00 

Nos.   9  to  11 

5  00 

No.  27     .       .  . 

12  00 

12  to  14  . 

6  00 

28     .       .  . 

13  00 

15  to  17  . 

7  00 

29     .       .  . 

14  00 

18  to  21  . 

8  50 

30     .       .  . 

15  00 

22  to  24  . 

10  00 

This  scale  not  to  go  below  two  and  one-half  (2^)  cents,  Western  Iron 
Association's  card. 

Ten  per  cent  added  on  all  strong  iron,  by  whatever  name  called,  No.  22 
and  lighter. 

All  sheets,  No.  18  and  lighter,  over  thirty-two  inches  wide,  ten  per  cent 
extra  on  above  prices. 

Heater  to  receive  one-fourth  (J)  above  prices  ;  shearman  one-fifth  (\) ; 
roller  to  receive  balance,  and  pay  rougher  and  catcher  only. 

Com.  of  Manuf.  Com.  of  Amal.  Asso.  of  Iron  and  Steel  Workers. 

B.  F.  Jones,  E.  H.  Davies, 

A.  M.  Byers,  Walter  F.  Davis, 

G.  F.  McCleane,  D.  H.  Summers, 

W.  C.  Cronemeyer,  John  Jarrett, 

G.  A.  Steiner,  Richard  Morgan, 
P.  H.  Laufman,  William  Martin, 

H.  McDonald,  Isaiah  Whitehead. 
John  Q.  Everson. 


118        INDUSTEIAL  CONCILIATION  AND  AEBITEATION. 


PITTSBURGH  SCALE  OF  PRICES  FOR  BOILING. 
MEMORANDUM  OF  AGREEMENT 


Made  this 


day  of    '  188  ,  between  the  firm  of 

and  the  Boilers  in  their  employ. 


When  Card  Eates  of  Bab 
Ibon  are,  peb  Poukd. 


2^^  cents 
3* 


Boiling  shall  be 
per  Ton  of  2,240 
pounds. 


^5  50 
5  60 
5  70 
5  80 

5  90 

6  00 
6  12 
6  25 
6  37 
6  50 
6  65 
6  80 
6  95 


When  Card  Kates  of  Bab 
Iron  are,  per  Pound. 


3  cents 


Boiling  shall  be, 
per  Ton  of  2,240 
pounds. 


V 

7 
7 
7 
7 
7 


8  10 
8  30 
8  50 
8  70 

8  90 

9  10 
9  30 


The  above  agreement  and  scale  of  prices  shall  continue  until  the  first  day 
of  June,  1881. 

For  the  Manuf         For  the.Amal.  Asso.  of  Iron  and  Steel  Workers. 


SCALE  OF  PRICES  FOR  MUCK  ROLLING. 


MEMORANDUM  OF  AGREEMENT 

Made  at  Pittsburgh  this  seventh  day  of  September,  1880,  between  a  Committee  of 
the  Amalgamated  Association  of  Iron  and  Steel  Workers  and  a  Committee  of 
Iron  Manufacturers,  appointed  to  fx  a  Scale  of  Prices  to  be  paid  for  Muck 
Rolling,  based  on  the  price  of  Boiling ;  it  being  understood  that  either  party 
shall  have  the  right  and  privilege  of  terminating  this  agreement  by  giving  sixty 
days^  notice  to  the  other  party,  but  that  there  shall  be  no  deviation  without  such 
notice  and  a  conference. 

It  is  agreed  that  the  price  to  be  paid  for  muck  rolling  per  ton  of  2,240  lbs. 
shall  be  twelve  and  one-half  per  cent,  or  one-eighth  of  the  price  paid  for 
boiling  iron,  from  and  after  the  first  day  of  September,  1880. 

It  is  further  agreed  that  the  price,  viz.,  twelve  and  one-half  per  cent,  of 
boiling  iron  shall  not  go  below  the  price  paid  on  a  two  and  one-half  cent 
card  of  the  Western  Iron  Association  as  a  basis  for  boiling  iron. 

The  above  price  to  include  all  labor  in  taking  iron  from  squeezer,  and 
delivering  upon  bank  straightened,  except  bloom  boy.    In  such  case,  where 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  119 


a  bloom  boy  is  used,  the  manufacturers  hereby  agree  to  pay  one-half  the 
wages  paid  to  said  bloom  boy. 

Com.  of  Manuf.  Com.  of  Amalgamated  Asso*  of  Iron  Workers. 

A.  F.  Keating,  Peter  Straub, 

A.  C.  MiLLiKKN.  August  Miller, 

Jacob  Wertz, 
John  Jarrett, 
M.  L.  Morgan. 

It  should  be  noted,  as  showing  the  importance  of  the  action 
in  adopting  these  scales,  that,  for  the  most  part,  they  governed 
for  years  the  wages  paid  in  all  the  rolling  mills  west  of  the 
Allegheny  Mountains.  At  Wheeling,  however,  scales  have 
been  adopted  through  conference  committees,  based  in  most 
instances  on  the  price  of  nails,  which  are  the  chief  production 
of  the  mills  of  that  vicinity.  Even  the  price  of  mining  coal  is 
fixed  by  a  scale  based  on  the  price  of  nails.  At  Cincinnati  the 
workmen  and  manufacturers  in  the  iron  mills,  early  in  the 
present  year,  by  committees,  arranged  a  series  of  scales  based, 
like  the  Pittsburgh  scales,  on  the  card  rate  of  iron,  which  are 
now  in  force.  At  Philadelphia,  at  the  close  of  a  long  strike 
early  in  this  year,  and  as  the  result  of  a  conference,  a  scale  of 
wages  was  agreed  upon  for  the  iron  mills  of  that  vicinity,  that 
has  been  in  force  since. 

It  should  be  said  in  regard  to  these  agreements,  that  they 
have  in  every  instance  been  faithfully  kept,  the  terms  have 
been  strictly  adhered  to,  and,  if  any  change  in  the  terms  of  the 
agreement  has  been  desired,  the  agreement  has  always  been 
abrogated  in  the  way  named  in  its  terms.  A  possible  exception 
to  this  statement  is  in  certain  cases  where  certain  employes 
working  under  these  scales  have  struck,  though  there  was  no 
question  as  to  their  wages,  to  assist  in  enforcing  the  demand  -  of 
some  other  class  of  labor,  —  as  when  the  rollers  would  strike  to 
assist  the  puddlers  to  obtain  a  scale  ;  but  even  in  such  cases  it 
should  be  stated  that  the  workmen  do  not  regard  it  as  in  any 
fair  sense  a  violation  of  their  agreement. 

Arbitration  in  Pennsylvania. 

In  no  State  of  the  Union  has  industrial  arbitration  received 
so  much  attention  as  in  Pennsylvania.  We  have  narrated  the 
history  of  conciliation  in  the  iron  trade  of  this  State,  but 
this  account  by  no  means  covers  the  history  of  conciliation  in 


120 


INDUSTEIAL  CONCILIATION  AND  AEBITRATION. 


its  industries ;  from  its  very  nature  it  is  well-nigh  impossible 
to  gather  the  facts  necessar}^  to  a  complete  history. 

With  arbitration  it  is  different,  its  methods  being  open  and 
formal,  and  of  such  a  nature  as  to  demand  a  record  of  some  kind 
which  can  be  made  available  for  historical  purposes. 

In  the  coal  trade  of  this  State  there  are  records  of  at  least 
three  attempts  at  formal  arbitration  in  three  of  the  great  coal 
basins,  —  the  Anthracite,  the  Pittsburgh,  and  the  Shenango 
Valley.  In  these  centres  arbitration  has  found  most  earnest 
advocates  both  among  operators  and  workmen ;  and  notwith- 
standing its  failure  in  each  case  in  which  it  has  been  tried,  not 
through  any  inherent  fault  in  the  system,  but  from  faults  in 
some  of  those  who  have  attempted  to  apply  the  principle  to 
industrial  disputes,  there  are  still  many  of  the  leading  men 
who  would  be  glad  to  see  a  new  trial  if  it  could  be  made  under 
the  proper  conditions. 

It  has  also  been  a  subject  of  careful  investigation  and  discus- 
sion by  the  executive  and  legislative  branches  of  the  state 
government.  At  the  meeting  of  the  legislature  next  after  the 
Pittsburgh  riots  of  1877,  a  bill  was  introduced  providing,  upon 
the  application  of  either  party  to  a  labor  dispute,  for  compulsory 
arbitration  with  legal  sanctions  and  enforcement  of  the  award. 
Just  here  it  may  be  proper  to  state  that  compulsory  arbitration 
is  a  complete  failure  in  England ;  or  perhaps  it  would  be  better 
to  say  that,  though  laws  providing  for  such  arbitrations  have 
been  on  the  English  statute  books  since  1824,  in  no  single  in- 
stance have  they  been  appealed  to.  Arbitration  in  England  has 
been  purely  voluntary  in  the  submission  of  the  case,  the  conduct 
of  the  investigation,  and  the  enforcement  of  the  awards. 

Previous  to  the  introduction  of  this  bill,  Gov.  Hartranft  had 
requested  the  writer  to  visit  England  as  special  commissioner  of 
the  State  to  examine  into  the  practical  workings  of  arbitration 
and  conciliation.  The  appointment  was  accepted,  and  the  inves- 
tigation made  in  1878;  and  the  result  embodied  in  a  report  ^ 
which  Gov.  Hartranft  transmitted  to  the  legislature  with  his 
last  message  in  1878,  devoting  considerable  space  in  the  message 
to  a  discussion  of  the  labor  question  and  the  advantages  to  be 
derived  from  arbitration. 

Notwithstanding  the  agitation  of  the  subject,  however,  there 
is  not  at  present  any  arbitration  board  in  the  State,  nor  is  formal 
and  systematic  arbitration  employed  as  a  means  of  settling  dis- 
putes between  employers  and  employed. 

1  Forming  Part  I.  of  this  pamphlet. 


IISTDUSTEIAL  CONCILIATION  AND  ARBITRATION.  121 


Arbitration  in  the  Pennsylvania  Anthracite  Regions. 

Referring  to  attempts  at  arbitration  mentioned  already,  it 
appears  that  the  first  formal  arbitration  in  this  country  of  which 
we  have  any  details — if,  indeed,  it  is  not  the  first  attempt  at 
arbitration  in  any  of  our  industries  —  took  place  in  the  anthra- 
cite regions  of  Pennsylvania  in  ISTl.*^ 

The  industrial  history  of  the  anthracite  regions  has  been 
marked  by  greatest  fluctuations  in  demand  and  prices  for  its 
product,  and  a  most  terrible  catalogue  of  outrages  connected 
with  labor  difficulties. 

Relative  to  demand  and  prices,  the  chief  features  of  the  trade 
have  been  times  or  eras  of  greatly  increased  demand  united  with 
high  prices,  to  be  soon  followed  by  other  times  and  eras  of  over- 
production, and  then  low  prices  and  resulting  depression  and 
disaster.  The  total  result,  however,  so  far  as  relates  to  produc- 
tion, has  been  a  constant  increase.  In  the  decade  ending 
with  1849,  the  amount  of  anthracite  coal  actually  sent  to  market 
was  18,954,678  tons  (see  Report,  Pennsylvania  Bureau  of  Sta- 
tistics, 1872-73,  p.  214).  In  the  next  decade  the  amount  in- 
creased to  58,333,469  tons ;  and  in  the  decade  following,  ending 
with  1869,  the  total  reached  106,883,488  tons.  That  is,  the  in- 
crease in  twenty  years  was  nearly  five  hundred  per  cent. 

This  rapid  increase  in  production  created  an  unprecedented 
demand  for  labor,  coupled  in  the  seasons  of  demand  with  such 
inducements  in  the  way  of  wages  that  vast  bodies  of  workmen 
were  attracted  from  other  industries  and  other  sections,  and 
even  from  foreign  countries,  to  the  antliracite  regions  and  the 
mining  of  coal.  It  is  estimated  that  at  the  time  of  the  arbi- 
tration under  consideration  over  fifty  thousand  persons  were 
directly  employed  in  connection  with  the  mining  of  anthracite 
coal. 

This  large  body  of  men  thus  gathered  from  all  trades  and  all 
sections,  to  the  following  of  an  industry  that  has  but  little  in 
itself  to  attract  men  to  it,  did  not  readily  unite.  That  intangible 
thing  that  the  French  call  esprit  du  corps,  which  is  such  a  con- 
servator at  times  of  impulse  and  passion,  and  so  inspiriting  in 
hours  of  depression  and  disaster,  grew  but  slowly.  The  work- 
men had  but  little  in  common  except  their  occupation,  and 

1  These  attempts  in  Pennsylvania  were  contemporaneous  with  those  in  Lynn, 
Mass.   See  Part  II.  of  this  pamphlet. 
16 


122         INDUSTRIAL  CONCILIATION"  AND  ARBITRATION. 


between  employes  and  employer  there  seemed  not  the  least 
community  of  interest.  In  the  periods  of  over-demand,  prices 
for  labor  would  be  forced  by  the  men  or  conceded  by  the  opera- 
tors to  a  ruinously  high  figure ;  but  the  inevitable  glutting  of 
the  market  that  followed  brought  wages  to  a  point  inadequate 
to  sustain  life,  and  a  period  of  privation  and  suffering  followed. 

These  periods  of  plenty  and  suffering  that  followed  each 
other  with  a  grim  regularity  soon  told  upon  the  character  of  the 
"workmen  of  this  region ;  and  a  condition  of  society  almost 
surpassing  belief  developed  itself,  marked  by  the  most  terrible 
evidences  of  its  existence.  Strikes  were  the  normal  condition 
of  the  region  ;  and,  their  outcome  being  for  the  most  part  the 
constant  defeat  of  the  workingmen,  a  feeling  of  utter  hopeless- 
ness and  blind  recklessness  became  the  ruling  spirit  of  many  of 
the  workmen,  though  it  should  not  be  forgotten  that  there  was 
still  a  large  class  of  miners  who  were  as  thoughtful,  provident, 
and  self-respecting  as  any  class  of  citizens.  Unfortunately, 
however,  it  is  not  this  class  that  give  character  and  reputation 
to  a  section.  A  writer,  speaking  of  the  condition  of  this  region 
during  the  war,  describes  it  as  "  a  pandemonium  of  outrage,  vio- 
lence, and  anarchy,  utter  disregard  of  the  sanctity  of  law,  and  of 
immunity  through  its  lax  enforcements,  such  as  has  never  been 
known  before  in  Pennsylvania,  and  seldom  in  the  nation.  The 
long  train  of  murders  and  of  attempted  murders,  of  horrible 
beatings,  of  outrages  by  waylaying,  of  robberies  and  attempted 
robberies,  none  of  them  prosecuted  to  conviction,  and  which,  by 
prejudiced  representation,  were  made  to  give  their  coloring  to 
the  character  of  the  whole  working  population,  constituted  a 
reign  of  horrors  never  to  be  forgotten  or  thought  of  without  a 
shudder  by  those  who  lived  through  them."  (Report,  Pennsyl- 
vania Bureau  of  Statistics,  1872-73,  p.  329.) 

It  was  in  the  midst  of  such  a  condition  of  affairs  that  two 
associations  were  formed,  that  for  years  exerted  a  powerful 
influence  on  the  employes  and  trade  of  this  region. 

On  the  6th  of  April,  1868,  a  petition  was  presented  to  the 
Court  of  Common  Pleas  of  Schuylkill  County,  asking  for  a 
charter  for  the  "  Workingmen's  Benevolent  Association  of  St. 
Clair,"  which  petition  was  granted  in  due  course.  On  the 
fourteenth  day  of  the  same  month,  the  Governor  of  Pennsyl- 
vania approved  an  act  which  made  eight  hours  a  legal  day's 
work,  the  act  to  take  effect  July  1. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


123 


About  the  middle  of  J une  a  movement  in  favor  of  this  law, 
which  originated  in  the  Mahanoy  Valley,  terminated  in  a  strike 
that  lasted  several  months,  and  resulted  in  the  discomfiture  of 
the  men.  The  suspension  of  operations  caused  by  this  strike 
advanced  the  price  of  coal,  which  was  ruinously  low  before, 
and  taught  the  miners  a  lesson  that  they  were  not  slow  to 
learn,  as  to  the  immediate  effect  of  suspension  on  production 
and  prices.  It  also  had  the  more  important  effect  of  extending 
the  Workingmen's  Benevolent  Association,  which  before  this 
had  been  local,  throughout  all  that  region.  Branches  of  the 
association  were  formed  in  various  parts  of  the  region ;  and  on 
March  17,  1869,  a  General  Council  of  the  Workingmen's  Benev- 
olent Association  was  formed  at  Hazelton,  in  which  the  differ- 
ent counties  were  allowed  representation  as  follows :  Schuylkill, 
4  ;  Luzerne,  4  ;  Carbon,  3  ;  Northumberland,  3  ;  Columbia,  2  ; 
Dauphin,  1. 

Prior  to  the  organization  of  the  Workingmen's  Benevolent 
Association  of  St.  Clair,  as  above  noted,  an  association  of  coal 
operators  was  formed  north  of  the  Broad  Mountain  in  the  year 
1867,  under  the  name  of  the  Mahanoy  Valley  and  Locust 
Mountain  Coal  Association.  It  embraced  nearly  all  the  larger 
collieries  in  that  region ;  and  its  success  in  the  disposition  of 
questions  heretofore  occasioning  strikes  was  such  as  to  lead  to 
the  formation  of  other  organizations  at  different  points  during 
the  year  1868,  by  representatives  from  each  of  these.  The 
Anthracite  Board  of  Trade  of  the  Schuylkill  coal  region  was 
formed  on  Nov.  19,  1869,  with  Mr.  William  Kendrick  as  presi- 
dent. This  organization  controlled  at  its  formation  4,487,000 
tons ;  and,  having  been  duly  incorporated,  acted  thereafter  in 
all  negotiations  with  the  workmen. 

Each  party  to  the  labor  contests  in  this  region  was  thus  pre- 
pared with  an  organization  that  could  give  voice  to  its  wishes 
and  intentions,  and  could  conduct  any  contest  that  should  be 
joined.  It  should  be  noted,  however,  that  neither  the  entire 
body  of  workmen  nor  all  the  operators  were  members  of  the 
respective  organizations. 

At  the  meeting  at  Hazelton,  noted  above,  at  which  the  Gen- 
eral Council  of  the  Workingmen's  Benevolent  Association  was 
formed,  the  members  resolved  to  prepare  for  a  general  suspen- 
sion of  work,  which  was  to  be  ordered  by  the  president  when 
four  counties  should  unite  in  favor  thereof.    As  the  result  of 


124         INDUSTEIAL  CONCILIATION  AND  AEBITEATION. 


the  suspension  at  the  time  of  the  eight  hour  strike  referred  to 
above,  and  the  consequent  reduction  of  production  and  advance 
in  price,  a  strong  impression  was  prevalent  in  the  minds  of  the 
men  that  a  minimum  should  be  fixed  to  the  price  of  coal,  and 
that  a  suspension  of  work  should  be  ordered  when  the  market 
would  not  afford  this  price  ;  the  suspension  to  continue  until 
the  demand  should  advance  the  price  of  coal  to  the  minimum 
fixed. 

In  accordance  with  this  view  and  the  action  of  the  Hazelton 
meeting,  a  suspension  was  resolved  on  ;  and  on  the  29th  of 
April,  1869,  Mr.  John  Siney,  as  president  of  the  Schuylkill 
Association,  here  called  the  Miners'  and  Laborers'  Benevolent 
Association,  ordered  a  general  suspension  of  all  work  excepting 
rock  work  timbering  and  repairing,  the  suspension  to  go  into 
effect  May  10.  This  suspension  was  general  throughout  the 
anthracite  region,  with  the  exception  of  the  mines  of  the  Penn- 
sylvania Coal  Company,  and  the  Delaware,  Lackawanna,  and 
Western  Coal  Company,  whose  workmen  by  a  unanimous  vote 
decided  "  to  postpone  suspension  to  some  future  time."  ^  The 
suspension  continued  in  the  other  upper  regions  for  five  months, 
—  from  April  to  August. 

The  General  Council  of  the  Workingmen's  Benefit  Associa- 
tion held  another  meeting  at  Hazelton,  May  11,  1869,  at  which 
the  first  formal  action  was  taken  by  the  miners  on  the  "  basis 
system."  The  theory  of  this  system  is  the  establishment  of  a 
scale  of  wages  having  a  certain  fixed  relation  to  the  selling 
price  of  coal,  with  a  minimum  limit  or  basis  below  which  the 
selling  price  of  coal  shall  not  fall,  or,  if  it  does,  wages  shall  not 
fall  below  the  rate  provided  for  at  this  minimum. 

At  this  Hazelton  meeting  of  May  11,  the  basis  system  was 
discussed,  and  it  was  resolved,  — 

• 

"  That  the  rainimum  price  of  coal  be  fixed  at  five  dollars  at  Elizabeth 
Port,  and  three  dollars  at  Port  Carbon;  and  the  basis  to  be  fixed  in  accord- 
ance therewith." 

The  questions  as  to  what  the  wages  were  to  be  at  the  basis, 
and  what  the  percentage  of  advance  as  the  price  went  up,  were 

1  See  Review  of  the  Operations  of  the  Basis  System  in  the  Schuylkill  Coal  Regions, 
p.  4.  I  am  under  obligations  to  Mr  F.  B,  Gowen,  President  of  the  Reading  Rail- 
road, for  a  copy  of  this  review,  with  manuscript  notes,  of  which  free  use  has  been 
made. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  125 

referred  by  the  council  to  the  executive  boards  of  the  several 
districts  "  for  their  settlement  and  final  disposal  to  the  best 
advantages  possible,"  only  providing  that,  if  any  district  failed 
to  obtain  a  fair  basis,  they  were  to  be  supported  by  the  others. 

This  resolution,  it  should  be  noted,  virtually  attempted  to  fix 
two  things :  — 

1st,  A  minimum  rate,  below  which  the  price  of  coal  should 
not  fall  at  the  mines  or  at  the  point  of  shipment  in  the  mining 
regions,  —  that  is,  at  Port  Carbon  ;  and 

2d,  It  attempted  to  fix  a  rate  of  freight  for  the  transportation 
of  coal,  which  was  to  be  two  dollars. 

Or,  in  other  words,  the  Workingmen's  Benevolent  Associa- 
tion proposed  to  regulate  the  mining,  transportation,  and  price 
of  coal,  —  an  undertaking  of  no  little  magnitude,  and  one  that 
had  tasked  the  best  energies  and  intelligence  of  the  anthracite 
regions. 

While  the  strike  or  suspension  of  work  was  in  progress,  the 
Executive  Committee  of  the  Coal  Association  of  the  Schuylkill 
region  submitted  to  the  men,  on  the  4th  of  June,  1869,  the 
following  propositions :  — 

1.  Prices  of  labor  to  be  regulated  by  prices  of  coal,  taking  the  average 
of  all  sizes  at  Port  Carbon  ;  the  percentage  to  be  regarded  in  making  the 
average  to  be  :  larger  sizes,  seventy-five  per  cent  ;  chestnut,  twelve  and  a 
half  per  cent  ;  and  pea,  twelve  and  a  half  per  cent. 

"2.  When  the  average  price  of  coal  is  three  dollars  per  ton  at  Port  Car- 
bon, outside  labor  to  be  eleven  dollars  per  week  ;  platform  men,  eleven 
dollars  and  a  half  per  week  ;  inside  labor,  twelve  dollars  per  week  ;  and 
miners,  fourteen  dollars  per  week,  clear  of  costs. 

"  3.  For  each  advance  of  twenty-five  cents  per  ton  at  Port  Carbon,  an 
advance  of  fifty  cents  per  week  and  five  cents  per  wagon  ;  and  for  each 
decline  of  twenty-five  cents,  a  similar  reduction,  yardage  to  be  in  proportion. 

"4.  The  advance  and  decline  in  price  of  coal  to  be  determined  by  a 
board  of  five  operators,  to  be  appointed  by  the  Workingmen's  Benefit 
Association,  who  will  pledge  themselves  to  make  a  true  and  correct  state- 
ment of  their  sales  for  each  month. 

"  5.  The  rates  of  wagon  work  and  yard  work  to  be  those  now  existing  at 
each  colliery,  on  which  the  advance  or  decline  is  to  operate  unless  modified 
by  amicable  agreement  between  employer  and  employe. 

"  6.  No  stoppage  of  work  until  a  notice  of  six  days  has  been  given. 

"  7.  If  any  colliery  in  this  association  is  prevented  from  starting  by  reason 
of  any  threats  against  bosses  or  other  employers,  or  by  reason  of  any  at- 
tempted dictation  as  to  who  shall  or  who  shall  not  be  employed,  whether  as 
boss  or  other  employe,  we,  as  representatives  of  the  Coal  Association,  pledge 
ourselves  to  remain  idle  until  such  colliery  be  able  to  start  wholly  free  from 
any  such  restraint  or  interference. 


126        INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 


"8.  We  also  require  that  the  local  committees  shall  abstain  from  all  ille- 
gitimate interference  with  the  working  of  the  collieries." 

At  a  meeting  of  the  General  Council  of  the  Workingmen's 
Benevolent  Association,  held  at  Mahanoy  City,  June  9,  the 
proposition  of  the  operators  having  been  considered,  it  was 
resolved,  — 

"  That,  the  object  of  the  suspension  having  been  attained  by  the  deple- 
tion of  the  surplus  of  coal  in  the  market,  on  and  after  June  16,  all  districts 
or  branches  that  can  agree  with  their  employers  as  to  basis  and  condition 
of  resumption  do  resume  work." 

The  council  refused  to  acquiesce  in  or  discuss  the  seventh 
and  eighth  clauses  of  the  operators'  proposition,  on  the  ground, 
as*  stated  by  Mr.  John  Parker,  the  president  of  the  Working- 
men's  Benevolent  Association,  that  the  workmen  claimed  no 
such  rights. 

Immediately  after  the  adjournment  of  the  General  Council, 
the  Executive  Board  of  Schuylkill  County  of  the  Working- 
men's  Benevolent  Association  met,  and  made  the  following 
proposition  as  a  basis  On  which  to  resume  work :  — 

"  That  we  demand  for  outside  labor  eleven  dollars;  platform  men  eleven 
dollars  and  a  half;  inside  labor  twelve  dollars;  and  miners  fourteen  dollars 
per  week,  when  working  on  wages  —  all  inside  work  to  be  clear  of  expenses; 
also,  that  contract  work  to  be  raised  in  accordance  therewith  :  this  to  be 
asked  when  coal  is  at  three  dollars  at  Port  Carbon. 

"  That  we  receive  one-fifth  of  all  advances  thereafter,  and  all  reduction 
to  be  taken  off  in  accordance  to  above  advances. 

*'  The  advances  and  reduction  to  be  on  all  sizes  above  pea." 

This  proposition  being  but  little  different  from  that  of  the 
operators,  it  was  accepted,  and  work  resumed  in  the  Schuylkill 
district  in  June.  In  those  parts  of  the  northern  region  in 
which  the  suspension  occurred,  the  operators  refused  to  accept 
a  basis,  and  the  suspension  continued  as  before  stated  until 
August,  when  the  men  yielded  and  went  to  work  without  a 
basis  and  scale. 

The  wages  for  June,  July,  and  August,  as  presented  in  the 
following  table,  were  agreed  upon  by  the  committees  repre- 
senting the  two  associations,  upon  hearing  the  statements  of  the 
presidents  as  to  prices,  —  that  for  August  being  increased  to 
make  up  a  deficiency  claimed  for  July.    Thereafter,  the  prices 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  127 


were  reported  in  writing  by  the  five  firms  selected,  on  the  25th 
of  each  month,  and  the  wages  were  based  on  the  average  so 
obtained ;  it  requiring,  however,  an  advance  or  decline  of  over 
twelve  and  a  half  cents  per  ton  to  permit  the  advance  or  re- 
duction of  wages. 

The  prices  of  coal  at  Port  Carbon  so  reported,  the  average, 
and  wages  paid  thereon  per  week,  are  given  in  the  following 
table  :  — 


1869. 

Pkices  beported  at  Pobt  Carbon. 

Highest. 

Second. 

Third. 

Fourth. 

Lowest. 

Average. 

June 

July- 

August  . 

September  . 

$3  15^ 

$2  99 

$2  61i 

12  49 

$2  89 

October 

3  66 

3  62 

3  58 

3  271 

3  21 

3  44 

November 

3  91 

3  81 

3  75 

3  75 

3  54 

3  75i 

December 

2  84 

2  82 

2  75 

2  68 

2  61 

2  74 

Averages 

$3  40| 

13  35| 

$3  26f 

$3  07^% 

12  96| 

$3  20^ 

1869. 

PAID  AT 

Wages  paid  pee  Week. 

Miners. 

Inside 
Labor. 

Outside 
Labor. 

June 

10  per  cent  advance 

115  40 

$13  20 

$12  10 

July 

15  '* 

(( 

16  10 

13  80 

12  65 

August . 

35  " 

(( 

18  90 

16  20 

14  85 

September  . 

Basis 

14  00 

12  00 

11  00 

October 

10  per  cent  advance 

15  40 

13  20 

12  10 

November 

15 

(( 

16  10 

13  80 

12  65 

December 

Basis 

14  00 

12  00 

11  00 

Averages 

$15  70 

$13  46 

$12  33^ 

128        INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


As  will  be  seen  by  an  examination  of  this  table,  the  fluctu- 
ations in  wages  under  the  basis  and  sliding  scale  had  been  quite 
marked,  but  the  average  for  the  seven  months  of  its  operation 
had  been  121  per  cent  above  the  basis.  For  the  whole  year  the 
advance  was  7.08,  an  amount  fully  twenty-five  per  cent  above 
the  average  of  1868,  which  was  again  higher  than  that  of  1867. 
It  will  also  be  noted  that  the  closing  month  of  1869  found  the 
price  of  coal  twenty-six  cents  per  ton  below  the  basis. 

In  view  of  these  facts,  the  Anthracite  Board  of  Trade  at  a 
meeting  held  at  Tremont,  Penn.,  Dec.  29,  1869,  offered  the 
following  terms  for  1870  :  — 

*'  Resolved,  That  hereafter  the  basis  shall  be  fixed  at  two  dollars  per  ton 
at  Port  Carbon,  and  wages,  whilst  coal  brings  that  rate,  shall  be,  — 

Outside  labor  $7  50  per  week. 

Inside   8  50   "  " 

Miners   10  50  "  " 

'*  The  contract  work  to  be  reduced  from  the  present  three  dollar  basis, 
forty  per  cent. 

"  The  advance  in  wages  as  the  price  of  coal  advances  shall  be  as  follows  : 
When  the  average  of  all  sizes  from  lump  to  chestnut  (both  inclusive)  reaches 
$2.50,  five  per  cent;  $3,  ten  per  cent;  S3. 25,  fourteen  per  cent;  $3.50, 
seventeen  per  cent;  $3.75,  twenty-one  per  cent;  $4,  twenty-five  per  cent; 
and  further  advances  in  the  same  proportion;  aud  in  all  cases  costs  must  be 
paid  by  the  parties  using  the  same. 

"  These  prices  to  be  obtained  from  the  average  of  actual  sales,  as  shown 
by  the  books  of  five  operators." 

This  proposition  was  rejected,  and  the  collieries  represented 
in  the  association  stopped  work.  A  number  of  outside  col- 
lieries, how^ever,  continuing'  to  work,  the  restriction  was  with- 
drawn Jan.  17,  that  those  might  work  who  thought  proper  to 
do  so. 

On  Feb.  18,  the  above  offer  was  withdrawn,  and  new  terms 
offered  on  a  basis  to  be  fixed  at  two  dollars  and  a  half  per  ton 
at  Port  Carbon ;  outside  labor  to  be  nine  dollars  per  week ; 
inside  labor  to  be  ten  dollars  per  week;  miners'  wages  to  be 
twelve  dollars  per  week,  clear  of  expenses.  Contract  work 
to  be  reduced  thirty  per  cent  below  present  prices.  Labor  to 
receive  twenty  per  cent  advance  on  coal. 

On  March  15,  the  largest  meeting  of  the  trade  ever  held 
took  place  in  Union  Hall,  Pottsville,  with  Mr.  James  Neill  as 
president.    Seventy-six  fiims,  representing  over  four  million 


INDUSTRIAL  CONCILIATION  AND  AEBITIIATION.  129 


tons,  were  present,  and  agreed  to  stand  by  the  offer  of  the 
Anthracite  Board  of  Trade,  of  the  two  dollars  and  a  half  basis, 
declaring  the  terms  to  be  "  even  more  liberal  than  the  present 
or  prospective  condition  of  the  trade  warranted ; "  and  notice 
was  given,  that,  if  these  terms  were  not  accepted,  work  would 
be  suspended  on  April  2. 

The  workingmen  still  adhering  to  the  claim  for  three  dollar 
basis  as  a  minimum,  work  at  once  ceased,  the  tonnage  decreas- 
ing until  it  was  only  16,038  tons  in  the  third  week  after  the 
stoppage. 

Through  the  instrumentality  of  F.  B.  Gowen,  Esq.,  president 
of  the  Philadelphia  and  Reading  Railroad  Company,  the  follow- 
ing terms  (known  as  the  "  Gowen  compromise")  were  offered  by 
the  men,  July  22,  and  finally  accepted  by  the  operators,  on 
learning  that  a  number  of  operators  had  given  orders  to  start, 
strongly  protesting  against  the  justice  of  the  terms :  — 

"  Resolved,  That  we,  the  members  of  the  Workingmen 's  Benevolent  Asso- 
ciation, do  offer  to  our  employers  of  Schuylkill  County  to  start  on  the  basis 
of  1869,  Avheu  coal  is  worth  three  dollars  per  ton  at  Port  Carbon. 

Resolved,  That,  when  coal  brings  $3.25,  we  demand  eight  and  one- 
quarter  per  cent  of  an  advance;  $3.50,  sixteen  and  one-half  per  cent  of  an 
advance;  $3.75,  twenty-four  and  three-quarters  per  cent  advance;  $i.OO, 
thirty-three  per  cent  advance. 

Resolved,  That  when  coal  falls  below  the  basis  of  1869,  say  $2.75,  we 
accept  a  reduction  of  eight  and  one-quarter  per  cent;  $2.50,  sixteen  and 
one-half  per  cent;  $2.25,  twenty-four  and  three-quarters  per  cent;  $2.00, 
thirty-three  per  cent,  and  nothing  lower. 

"  Resolved,  That  any  miners  working  on  contract,  after  they  start  earning 
over  $100  per  month,  be  reduced  ten  per  cent;  $125  and  over,  twenty  per 
cent;  $150  and  over,  thirty  per  cent;  $200  per  month,  if  there  be  any,  forty 
per  cent. 

"  Resolved,  That  the  above  figures  be  taken  from  the  six  grades  of  coal, 
pea  coal  not  included. 

Resolved,  That  the  above  resolutions  be  handed  to  F.  B.  Gowen,  Esq., 
President  of  the  Philadelphia  and  Reading  Railroad  Company. 

(Signed)  JOHN  SINEY,  President. 

"Geo.  Corbett,  Secretary^ 

At  the  time  the  basis  of  1869  was  adopted,  it  was  tacitly 
agreed  that  interference  on  the  part  of  the  workingmen,  or 
"victimizing"  on  the  part  of  the  manufacturers,  was  to  cease. 
This  tacit  understanding  was  not  kept.  The  Workingmen's 
Benevolent  Association  sustained  its  members  in  what  the  An- 
thracite Board  of  Trade  regarded  as  illegitimate  and  arbitrary 

17 


130         INDUSTRIAL  CONCILIATION  AND  AEBITEATION. 


interference  with  their  business ;  and  in  return  the  Anthracite 
Board  of  Trade,  or  collieries  connected  with  it,  had  the  mem- 
bers of  the  Workingmen's  Benevolent  Association  arrested  for 
conspiracy,  and  they  were  convicted  and  imprisoned.  These 
facts,  and  a  desire  to  avoid  all  causes  of  trouble,  led  to  the  sign- 
ing of  the  following  agreement  as  supplementary  to  and  ex- 
planatory of  the  Gowen  compromise. 

AGREEMENT 

Made  at  Pottsville  this  29th  of  July,  1870,  between  the  Committee  of  the  Anthra- 
cite Board  of  Trade,  and  the  Committee  of  the  Workingmen's  Benevolent 
Association. 

It  is  agreed  that  the  Workingmen's  Benevolent  Association  shall  not  sus- 
tain any  man  who  is  discharged  for  incompetency,  bad  workmanship,  bad 
conduct,  or  other  good  cause;  and  that  the  operators  shall  not  discharge  any 
man  or  ofl&cer  for  actions  or  duties  imposed  upon  him  by  the  Workingmen's 
Benevolent  Association. 

It  is  further  agreed  that  the  spirit  and  intention  of  the  resolution  (called 
the  equalization  resolution),  passed  by  the  Workingmen's  Benevolent  Asso- 
ciation, is  that  each  man  shall  work  regularly;  and  it  is  the  place  of  the 
bosses  and  operators  to  see  that  he  does.  The  resolution  is,  that  any  miner 
earning  above  expenses,  over  one  hundred  and  less  than  one  hundred  and 
twenty-five  dollars,  shall  be  reduced  ten  per  cent  on  the  basis;  earning  over 
one  hundred  and  twenty-five  dollars  and  less  than  one  hundi-ed  and  fifty 
dollars,  shall  be  reduced  twenty  per  cent  on  the  basis;  earning  over  one 
hundred  and  fifty  dollars  and  under  two  hundred  dollars,  to  be  reduced  thirty 
per  cent  on  the  basis;  earning  over  two  hundred,  to  be  reduced  forty  per 
cent  on  the  basis. 

For  obtaining  the  price  of  coal  monthly,  the  president  of  the  Anthracite 
Board  of  Trade  and  the  president  of  the  Workingmen's  Benefit  Association 
of  Schuylkill  County  shall  meet  on  the  twentieth  day  of  each  month,  and 
select  five  operators,  who  shall,  on  the  25th  inst.  following,  produce  a  state- 
ment, sworn  or  afl&rmed  to,  of  the  prices  of  coal  at  Port  Carbon,  for  all  sizes 
above  pea  coal. 

The  five  operators  shall  be  selected  from  a  list  of  those  shipping  over  forty 
thousand  tons  annually,  and  none  shall  be  selected  the  second  time  until  the 
list  is  exhausted. 

The  price  of  coal  so  obtained  shall  fix  the  rate  of  wages  for  that  month; 
and  this  agreement  in  regard  to  the  mode  of  obtaining  prices  shall  remain  in 
force  during  the  year  1870. 

Under  these  terms,  which  continued  in  force  for  the  year,  the 
average  prices  per  ton  at  Port  Carbon,  exclusive  of  pea,  rates 
of  payment,  and  weekly  wages,  were  as  follows :  — 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  131 


Pricks  Reported  at  Port  Carbon. 


1870. 

Highest. 

Second. 

Third. 

Fourth. 

Lowest. 

Average. 

August . 

$3  27 

$2  92^2^ 

$2  85i 

$2  74:j\ 

$2  48^V 

$2  85i 

September  . 

2  50^ 

2  47^% 

2  42| 

2  41 

2  m 

2  44^ 

October 

2  70 

2  51iV 

2  50J^ 

2  47^^ 

2  33i 

2  50^\ 

November 

2  39 

2  39 

2  35^ 

2  15f 

2  09i 

2  27^V 

December 

2  28 

2  204 

2  17| 

2  171 

2  OOf 

2  17 

Averages 

$2  62^V 

$2  50^2_ 

$2  46^% 

$2  39i 

$2  261 

$2  45 

Wages  Paid  per 

Week. 

1870. 

PAID  AT 

Miners. 

Inside 

Outside 

Labor. 

Labor. 

August  . 

81  per  cent  reduction  . 

$12  85 

$11  01 

$10  09 

September 

16^ 

11  69 

10  02 

9  19 

October  . 

161-  " 

11  69 

10  02 

9  19 

November 

24f  " 

10  54 

9  03 

8  28 

December 

241  a 

10  54 

9  03 

8  28 

Averages 

111  461 

$9  82| 

$9  OOf 

On  the  7th  of  November,  1870,  the  committees  representing 
the  Anthracite  Board  of  Trade,  and  the  Workingmen's  Benevo- 
lent Association  of  Schuylkill  County,  met  in  Pottsville,  to 
arrange  for  the  basis  for  1871.  Both  parties  signed  an  agree- 
ment to  advocate  the  adoption  of  the  following  terms,  provided 
that  satisfactory  arrangements  could  be  made  with  the  railroad 
company  for  a  fair  reduction  of  tolls ;  to  commence  with  coal 
at  f  2.50  per  ton  at  Port  Carbon.  Outside  wages,  nine  dollars 
per  week ;  inside  wages,  ten  dollars  per  week ;  miners,  day, 
twelve  dollars  per  week ;  contract  work  to  be  reduced  sixteen 
and  a  half  per  cent  from  the  present  basis.  The  reduction  or 
addition  of  percentage  to  be  graded  on  the'  new  price  thus 


132         INDUSTRIAL  CONCILIATION  AND  AEBITEATION. 


formed,  at  the  rate  of  one  per  cent  for  each  three  cents  advance 
or  decline  in  coal. 

Pending  the  consideration  of  this  agreement,  and  before 
action,  on  the  1st  of  December,  1870,  the  northern  districts 
decided  to  reduce  wages,  and  gave  notice  accordingly.  The 
workmen  resisted,  and  finally,  through  the  General  Council  of 
the  Workingmen's  Benevolent  Association  (the  delegates  from 
Schuylkill  County  voting  no,  but  being  out-voted  by  the  other 
counties),  a  general  suspension  was  ordered  Jan.  10,  1871. 

On  Jan.  25,  the  delegates  of  the  Workingmen's  Benevolent 
Association  in  Schuylkill  County  resolved  to  adhere  to  the 
three  dollar  basis,  if  the  northern  companies  co-operated  with 
them ;  if  not,  they  would  make  the  best  terms  for  themselves 
,they  could.  This  entirely  repudiated  the  action  of  the  com- 
mittees on  Nov.  7,  1870. 

The  Philadelphia  and  Reading  Railroad  Company  having 
decided  to  increase  the  rates  of  tolls  as  shipments  decreased, 
until  increased  shipments  could  be  secured,  the  authority  of  the 
Legislature  was  invoked  by  the  men,  and  the  Judiciary  Commit- 
tee of  the  Senate  was  instructed  to  take  testimony  and  report. 

This  investigation  resulted  in  nothing  but  a  virtual  defeat  of 
the  Workingmen's  Benevolent  Association,  the  committee  re- 
porting that  in  accordance  with  certain  decisions  of  the  Supreme 
Court,  the  Legislature  had  no  power  to  interfere. 

We  have  entered  thus  fully  into  the  history  of  the  labor 
•troubles  in  the  -anthracite  region  prior  to  and  at  the  time  of  the 
first  trial  of  the  basis  system,  as  it  shows  most  admirably  the 
advantages  that  result  from  the  adoption  of  conciliation  in  the 
settlement  of  labor  troubles.  If  in  such  a  trade,  with  such  a 
class  of  men  as  we  have  described,  under  so  many  adverse  cir- 
cumstances, an  agreement  could  be  reached  that  should  be  self- 
acting,  and  should  regulate  the  wages  with  the  fluctuations  of 
the  market,  it  need  scarcely  be  said  that  other  trades  that  will 
not  encounter  any  such  adverse  circumstances  need  not  despair 
of  finding  through  it  a  settlement  of  some  of  the  vexed  ques- 
tions that  afflict  their  special  industry. 

We  have  now  reached  the  time  when,  under  the  decision  of 
an  umpire  and  as  the  result  of  a  careful  trial,  the  basis  system 
received  a  deliberate  sanction,  and  became  a  feature  of  the 
method  of  the  payment  of  wages  in  the  Schuylkill  Valley. 

We  have  already  noted  the  act  of  the  General  Council  of  the 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


133 


Workingmen's  Benevolent  Association,  in  abrogating  without 
notice  the  basis  for  1871,  agreed  upon  by  the  president  of  the 
Workingmen's  Benevolent  Association,  for  adoption  in  Schuyl- 
kill County,  and  the  demand  for  the  old  three  dollar  basis. 
Coupled  with  this  we  have  noted  the  advance  of  tolls  on  the 
Reading  Road,  the  appeal  to  the  legislature  by  the  Working- 
men's  Benevolent  Association,  and  its  failure  to  accomplish  the 
purpose  designed. 

The  subject  of  arbitration  as  a  means  of  settling  these  dis*- 
putes  had  for  some  time  received  a  good  deal  of  attention. 
Reports  had  been  received  of  its  operations  in  England,  and 
published  in  the  local  journals;  and  some  of  the  most  influential 
of  these  had  urged  its  adoption.  At  the  time  of  the  coal  inves- 
tigations by  the  legislature  above  referred  to,  Mr.  Gowen  of  the 
Reading  Road  used  his  utmost  influence  to  prevail  upon  the 
workmen  to  accept  arbitration.  His  views  of  arbitration,  and 
his  efforts  to  secure  its  adoption,  he  thus  states  in  Kis  argument 
before  the  committee  :  — 

"  I  believe  that  the  only  permanent  remedy  for  personal  differences  is  arbi- 
tration, with  an  umpire  whose  decision  shall  be  final.  There  never  has  been 
a  time  when  we  were  not  willing  to  resort  to  this  plan.  For  two  years  we 
have  been  trying  to  bring  it  about.  In  the  last  annual  report  of  the  Reading 
Railroad  Company,  it  was  suggested  as  the  proper  method  of  avoiding  future 
troubles  ;  but  the  Workingmen's  Benevolent  Association  has  never  been 
willing  to  adopt  it.  Acting  entirely  upon  the  principle  that  no  one  had  any 
rights  but  themselves,  and  that  what  they  did  not  know  was  not  worth  know- 
ing, they  have  persistently  refused  to  accept  any  other  arbiter  than  that  of 
their  own  wills.  Whatever  we  suggested  has  been  considered  as  the  advice 
of  an  enemy  ;  and  they  have  never  yet  arrived  at  the  conclusion  that  the 
interests  of  the  workingman  and  his  employer  are  identical,  and  that  both 
can  be  best  subserved  by  unity  of  action. 

"  Even  so  late  as  this  afternoon,  I  stated  to  the  officers  of  the  association, 
that,  if  they  would  agree  to  the  postponement  of  this  argument  for  one  week, 
I  would  call  a  general  meeting  of  the  railroad  and  mining  interests  for  to- 
morrow, and  would  hand  to  them  on  the  following  day  (Friday)  a  proposi- 
tion that  work  should  be  resumed  on  Monday  in  all  the  districts,  without  any 
agi-eement  about  wages,  and  that  before  the  end  of  the  month  a  board  of 
arbitration  and  conciliation,  with  an  umpire  whose  decision  should  be  final, 
should  meet  in  each  district  to  adjust  the  wages  ;  that  whatever  such  board 
agreed  to  would  be  paid  ;  and  that  the  charges  for  transportation  should  be 
reduced  as  soon  as  work  was  commenced  :  but  this  proposition  was  promptly 
rejected,  and  I  was  told  that  the  argument  should  be  proceeded  with  to-day." 


184         INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 


During  his  testimony,  earlier  in  the  investigation,  in  answer 
to  the  question,  "  How  is  this  [that  is,  the  troubles]  going  to 
end  ?  "  he  said,  — 

"It  can  end  whenever  the  workingmen  listen  to  reason,  and  sit  quietly 
down  among  themselves,  and  meet  the  operators,  and  let  some  umpire  decide 
it.  I  have  been  trying  to  do  that.  I  have  cited  cases  in  England  where  it 
has  done  great  good ;  let  the  workingmen  have  their  committee,  and  the 
operators  their  committee,  and,  if  they  cannot  agree,  let  some  umpire  decide 
between  them." 

His  appeal  and  offer,  in  the  end,  were  not  without  effect ;  for, 
by  an  agreement  made  soon  after  the  legislative  investigation, 
arbitrators  were  selected  from  both  sides  for  Carbon,  Luzerne, 
Schuylkill,  Columbia,  and  Northumberland  Counties,  who  met 
at  Mauch  Chunk,  April  17,  1871,  and  chose  Judge  William 
Elwell  of  Bloomsburg  as  umpire.  The  board  had  been  con- 
vened ''to  settle  the  difficulties  now  [then]  existing,  but  no 
others ; "  but,  to  the  surprise  of  the  operators,  the  delegates 
from  the  Luzerne  and  Lehigh  regions  refused  to  allow  the  ques- 
tion of  wages  to  be  submitted  to  the  decision  of  the  umpire,  and 
the  men  from  Schuylkill  introduced  a  new  proposition,  basing 
wages  upon  the  price  of  coal  on  board  vessels  at  Philadelphia,  — 
an  evident  attempt  to  control  transportation  charges,  in  which 
they  had  just  been  defeated  before  the  legislature.  These  posi- 
tions thus  taken  by  the  workmen  resulted  in  the  failure  of  the 
arbitration,  so  far  as  wages  were  concerned;  but  the  question  as 
to  the  respective  rights  of  employers  and  employed  was  submit- 
ted to  Judge  Elwell  for  his  decision.  E.  W.  Clark,  on  the  part 
of  the  operators,  and  James  Kealy,  on  the  part  of  the  workmen, 
formally  presented  their  statements  in  reference  to  the  questions 
of  interference  with  the  works,  and  discharging  men  for  their 
connection  with  the  Workingmen's  Benevolent  Association. 
Votes  taken  on  the  adoption  of  the  presentments  of  either  side 
being  rejected,  they  were  referred  to  the  umpire,  who  at  the 
next  session  gave  the  following  decision :  — 

DECISION  OF  HON.  WILLIAM  ELWELL,  UMPIRE. 

To  whom  tvas  referred,  by  the  Board  of  Arbitration  convened  at  Mauch  Chunk, 
the  question  of  Interference  of  Mines. 

CONTROL  OF  WORK. 

The  umpire,  to  whom  was  referred  certain  points  in  reference  to  control  of 
collieries,  upon  which  points  arbitrators  here  present,  chosen  respectively  by 
operators  and  miners,  have  failed  to  agree,  makes  the  following  report :  — 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  135 


First,  The  right  of  an  owner  or  lessee  and  operator  of  a  colliery  to  the 
entire  and  exclusive  control  and  management  of  his  works  is  guaranteed  to 
him  by  the  law  of  the  land,  and  is  of  such  an  unquestionable  character  that 
it  ought  not  to  be  interfered  with,  either  directly  or  indirectly. 

Second,  The  umpire  concurs  with  and  adopts,  as  a  correct  statement  of 
the  law,  that  part  of  the  late  proclamation  of  the  Executive  of  this  Common- 
wealth, wherein  he  says,  that  "  it  is  unlawful  for  any  person,  or  association 
of  persons,  by  violence,  threats,  or  other  coercive  means,  to  prevent  any 
laborers  or  miners  from  working  when  they  please,  for  whom  they  please, 
and  at  such  wages  as  they  please  ;  and  alike  unlawful,  by  such  violence  or 
threats,  to  deter  or  prevent  the  owners  or  operators  of  mines  from  employing 
whomsoever  they  may  choose  to  employ,  and  at  such  wages  as  may  be  agreed 
upon  between  the  employer  and  the  person  employed." 

Third,  It  is  the  undoubted  right  of  men  to  refuse  to  work  except  upon 
such  terms  as  shall  be  agreeable  to  them  ;  but  a  general  understanding  that  no 
person  of  a  particular  association  of  laborers  shall  work  for  any  operator  who 
has  in  his  employ  a  member  of  such  association,  who  has  not  paid  his  dues  to 
the  association  ;  or  any  person  who  does  not  belong  to  such  association,  —  is 
contrary  to  the  policy  of  the  law,  and  subversive  of  the  best  interests  of  the 
miners  and  their  employers.  An  association  may  inflict  fines  upon  its  mem- 
bers for  breach  of  by-laws,  and  expel  for  non-payment  ;  but  it  has  no  right, 
by  combined  action,  to  place  the  defaulter  in  the  light  of  an  outlaw  in  the 
transaction  of  business  with  others. 

Fourth,  The  umpire  decides  that  it  is  contrary  to  the  spirit  of  the  law,  as 
stated  secondly  above,  for  a  body  of  men  to  agree  not  tb  work,  because  their 
employer  refuses  to  employ  a  particular  person,  or  because  he  has  discharged 
such  person.  If  such  a  case  arises  where  the  act  of  the  operator  is  deemed 
to  be  oppressive,  and  he  refuses  to  redress  the  wrong,  it  is  a  proper  one  for 
local  arbitration,  by  which,  in  most  cases,  the  difficulty  could  be  properly 
settled  without  the  disastrous  consequences  arising  both  to  the  employers 
and  employed  by  a  strike,  even  at  one  colliery. 

Fifth,  As  persons  of  sound  mind  and  competent  age  are  permitted  by  law 
to  bargain  for  themselves,  their  contracts  in  regard  to  labor  at  mines  should 
be  held  as  sacred  as  other  contracts,  and  should  not  be  annulled  or  set  aside 
in  any  manner  different  from  that  provided  for  other  cases.  Interference  by 
persons  not  parties  to  the  contract  is  not  to  be  tolerated. 

Sixth,  Operators  ought  not  in  any  manner  to  combine  against  persons 
who  belong  to  the  Miners'  and  Laborers'  Benevolent  Association.  Any 
operator  who  refuses  to  employ  a  person  because  he  is  so  connected,  or  who 
shall  discharge  him  for  that  reason,  would  thereby  give  good  grounds  for 
censure,  and  for  other  members  to  refuse  to  work  for  him. 

Seventh,  No  member  of  the  Miners'  and  Laborers'  Benevolent  Association 
ought  to  be  deprived  of  his  work  because  of  his  being  selected  by  his  branch 
to  perform  the  duties  mentioned  in  Sect.  3,  Art.  16  of  the  by-laws  of  that 
association,  if  his  duties  are  performed  in  the  manner  there  mentioned. 

Eighth,  In  regard  to  the  right  claimed  by  the  miners  to  cease  work  when 
they  see  cause,  whether  in  a  body  or  otherwise,  it  is  impossible  to  lay  down 
any  rule,  and  I  am  not  aware  that  it  is  expected  of  me  to  do  so  ;  but  I  may 
be  allowed  to  recommend  that  —  after  resumption  again  takes  place ,  and 


136         INDUSTEIAL  CONCILIATION  AND  ARBITKATION. 


business  is  again  moving  in  its  accustomed  channel  —  immediate  steps  be 
taken  to  provide  for  the  adjustment  of  difficulties,  if  any  shall  arise  in 
future,  before  they  reach  the  disastrous  proportions  of  those  which  now 
afflict  not  only  the  laborers  and  operators,  but  the  whole  country. 

Ninth,  Whenever  it  is  stated  in  the  foregoing  report  that  an  act  is  unlaw- 
ful, is  censurable,  or  ought  not  to  be,  it  is  to  be  understood  in  the  same 
manner  as  if  the  umpire  had  awarded  that  such  act  shall  not  be  done  nor 
allowed  by  either  of  the  parties  represented  in  this  arbitration. 

WILLIAM  ELWELL,  Umpire. 

Mauch  Chunk,  April  19,  1871. 

The  board  of  arbitration  having  failed  to  settle  the  wages 
question,  the  operators  of  Schuylkill  County  determined  to 
ignore  the  Workingmen's  Benevolent  Association,  and  appealed 
directly  to  the  men;  and  under  date  of  April  22,  1871,  through 
a  committee  they  made  a  proposition  to  pay  wages  on  a  fixed 
basis  of  $2.75  for  coal  for  the  balance  of  the  year. 

The  proposition  was  as  follows  :  — 

To  the  Workingmen  of  Schuylkill,  Northumberland,  and  Columbia  Counties. 

Having  failed  to  make  terms  with  your  representatives,  for  the  resump- 
tion of  work,  we  have  come  to  the  conclusion  that  the  best  way  to  start  our 
collieries,  and  furnish  you  employment,  is  to  address  ourselves  directly  to  you. 

We  have  left  no  effort  untried  on  our  part  to  come  to  some  reasonable  ad- 
justment with  your  representatives.  In  the  board  of  arbitration  which  lately 
met  at  Mauch  Chunk,  we  hoped  to  find  a  solution  for  all  difficulties,  because 
we  believed  that  that  board  was  convened,  and  the  umpire  selected,  in  accord- 
ance with  the  resolution  of  your  General  Council,  "  to  settle  the  difficulties 
now  existing,  and  no  others  ;  "  but  to  our  surprise  we  were  met  with  an 
entirely  new  proposition.  Finding  that  the  present  difficulties  about  wages 
were  entirely  ignored  by  your  representatives,  and  that  new  issues  were  pre- 
sented, and  also  that  the  men  of  the  Luzerne  and  Lehigh  regions  were  not 
willing  to  submit  to  the  decision  of  the  umpire  upon  the  question  of  wages, 
we  have,  after  careful  consideration,  determined  to  offer  you  a  fixed  rate  of 
wages,  without  regard  to  the  price  of  coal. 

We  propose  to  pay  you  for  the  balance  of  this  year  the  following  rates  : 
Outside  laborer,  $10  per  week;  inside  laborer,  $11  per  week;  miners,  by 
day's  work,  $13  per  week;  and  a  reduction  of  contract  work  of  ten  per  cent 
upon  the  prices  paid  under  the  $3  rate  of  the  basis  of  1869. 

We  wish  you  to  distinctly  understand  that  we  do  not  desire  to  interfere 
with  your  association  in  any  manner  whatever.  The  question  of  interfer- 
ence with  the  management  of  our  collieries  has  been  clearly  settled  by  the 
decision  of  the  umpire;  and  we  shall  at  all  times  be  willing  to  assist  you  in 
maintaining  your  association  for  the  relief  of  those  members  who  by  accident 
or  sickness  may  require  your  aid. 

We  believe  that,  if  this  offer  is  accepted  by  you,  immediate  resumption 
can  take  place,  and  that  we  can  give  you  steady  work  for  the  remainder  of 
the  year,  and  put  an  end  to  the  unpleasant  and  unprofitable  bickerings  that 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  137 


have  heretofore  taken  place  almost  monthly.  AVe  make  this  offer  under  the 
belief  that  it  will  be  more  acceptable  to  you  than  the  offer  of  the  $2.50  basis; 
but,  if  you  prefer  the  basis  system,  we  will  be  willing  to  submit  in  writing, 
to  Judge  El  well,  the  umpire,  the  relative  merits  of  the  $2.50  basis  hereto- 
fore offered  by  us,  and  the  $3  basis  heretofore  claimed  by  you,  and  to  abide 
by  his  decision,  whatever  it  may  be. 

F.  BORDA,  Chairman. 

C.  M.  Hill.,  Jun.,  Secretary. 
Philadelphia,  April  22,  1871. 

This  was  a  liberal  offer ;  but  the  evident  design  to  ignore 
the  leaders  of  the  Workingmen's  Benevolent  Association,  and 
the  association  itself,  led  to  the  issuing  of  the  following  card, 
and  the  adoption  of  resolutions  by  the  Workingmen's  Benevo- 
lent Association,  in  which  it  will  be  seen  thej  recede  from  their 
refusal  to  arbitrate  on  wages :  — 

*'  Whereas,  A  committee  of  operators  have  made  a  proposition  directly  to 
the  miners,  thus  utterly  ignoring  our  organization,  and  grossly  insulting  its 
legally  elected  officers  ;  and 

*'  Whereas,  We  regard  said  proposition  as  a  bribe  to  the  men  to  surrender 
the  basis,  and  agree  that  the  organization  shall  cease  to  be  protective  in  its 
character  ;  and 

"  Whereas,  Even  at  such  great  cost  the  men  are  not  guaranteed  steady 
work  during  the  year  :  therefore 

"  Resolved,  That  we  cannot  accept  said  proposition." 

Mr.  WiUiams,  for  Xo.  9  District,  voted  against  the  resolution,  because 
instructed  by  his  district  to  accept  conditionally  the  proposition  of  the  op- 
erators ;  but  he  and  others  who  voted  nay  guaranteed  that  their  constituents 
would  abide  by  the  above  decision. 

On  motion  of  Mr.  Ryan,  the  following  resolutions  were  adopted:  — 

"  Resolved,  That  Schuylkill  County  will  resume  work  as  soon  as  prac- 
ticable on  a  basis  of  $2.75,  with  wages  for  miners  at  §12.85  per  week,  in- 
side laborers  $11.01  per  week,  and  outside  laborers  $10.10  per  week,  with  a 
sliding  scale  to  $2.50,  or  one  cent  in  three  reduction;  also  with  an  advance 
of  one  cent  in  three  in  the  price  of  coal  at  Port  Carbon,  above  $2.75  per  ton; 
the  basis  price  of  contract  work  to  be  eight  and  a  quarter  per  cent  below  the 
basis  of  1869.  We  make  this  offer  in  good  faith,  knowing  that  this  scale  is 
quite  as  favorable  as  the  prices  offered  to  the  men  on  Saturday  last,  knowing 
that  it  is  as  little  as  the  men  can  afford  to  accept,  less  in  fact  than  they 
ought  to  accept,  and  that  it  may  be  the  means  of  breaking  the  dead-lock. 

"  Resolved,  That,  if  this  offer  is  not  agreeable  to  the  operators,  we  are 
willing  to  submit  the  question  of  wages,  including  all  propositions  thus  far 
made  by  either  side,  to  arbitraticn;  to  appoint  committees  of  four  on  each 
side  to  support,  by  argument,  their  several  offers." 

A  committee  was  appointed  to  wait  on  Mr.  Kendrick,  President  of  the 
Anthracite  Board  of  Trade,  to  give  him  the  result  of  the  meeting. 

JOHN  SINEY,  President. 

George  Corbett,  Secretary. 
PoTTSViLLE,  April  27,  1871. 

18 


138         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


The  following  reply  was  returned  in  answer  to  the  above :  — 

Mr.  John  Siney,  President. 

Sir,  —  I  am  in  receipt  of  resolution  passed  by  the  Executive  Committee 
of  the  Workingmen's  Benevolent  Association,  April  27,  1871.  In  reply- 
would  say,  that  I  have  submitted  it  to  the  operators,  and  they  adhere  to  the 
proposition  as  made  to  the  men  on  Saturday,  April  22,  1871. 

Yours  truly, 

WM.  KElii'DRlCK,  President  A.  B.  T, 

However,  arbitration  in  the  question  of  wages  was  decided 
upon,  May  11,  for  Schuylkill  County,  the  other  regions  having 
resumed  work  by  mutual  agreement,  as  the  following  article 
will  show :  — 

ARTICLES  OF  AGREEMENT 

Made  and  entered  into  between  the  Anthracite  Board  of  Trade  and  the 
Miners^  and  Laborers^  Benevolent  Association^  this  eleventh  day  of  May^ 
1871, 

We  agree  to  submit  for  the  decision  of  the  umpire.  Judge  Elwell,  the 
question  of  wages  for  Schuylkill  County,  for  the  year  1871,  as  follows  :  — 

Firsts  The  operators'  proposition  as  made  in  Philadelphia :  namely, 
basis  to  be  $2.50  at  Port  Carbon,  with  outside  wages  at  $9  per  week; 
inside  wages  at  |10  per  week;  miners,  by  day's  work,  |12  per  week;  con- 
tract work  to  be  reduced  sixteen  and  a  half  per  cent  from  the  present 
rates;  the  advance  or  decline  of  wages  to  be  one  percent  for  every  three 
cents  advance  or  decline  in  the  price  of  coal,  to  be  graded  on  the  new  price 
thus  formed.  Wages  not  to  be  less  than  would  be  paid  with  coal  at  $2  at 
Port  Carbon. 

Second,  The  Miners'  and  Laborers'  Benevolent  Association's  proposition 
of  $3  at  Port  Carbon  as  a  minimum,  with  wages  as  last  year  at  that  rate  : 
namely,  outside  wages,  $11  per  week;  inside  wages,  $12  per  week;  miners, 
by  day's  work,  $14  per  week;  advance  to  be  one  percent  for  every  three 
cents  in  the  advance  in  price  of  coal. 

We  agree  to  the  reference  of  the  above  proposition  under  the  following 
conditions  and  terms  : 

First,  Each  side  to  submit  their  proposition,  with  argument  thereon,  in 
writing,  to  the  umpire. 

Second,  Men  to  resume  work  at  all  the  collieries  immediately.  The 
wages  to  be  paid,  to  be  in  accordance  with  the  decision  of  the  umpire. 

Third,  Prices  shall  be  obtained  from  a  list  of  aU  operators  shipping  over 
20,000  tons  in  1870.  Five  operators  shall  be  chosen  from  this  list  by  lot  on 
the  tenth  day  of  each  month  (if  Sunday,  then  the  preceding  day),  by  four 
persons,  two  to  be  chosen  by  the  Anthracite  Board  of  Trade,  and  two  by 
the  Miners'  and  Laborers'  Association.  The  operators  so  chosen  to  forward 
to  each  side  of  the  committee  chosen  as  above,  on  or  before  the  fifteenth 
day  of  the  month,  a  statement  of  the  average  of  all  sales  of  coal  for  the 
thirty  days  preceding,  calculated  at  Port  Carbon.    They  (the  committee) 


INDUSTRIAL  CONCILIATION  AND  ARBITEATION.  139 


shall  meet  on  the  fifteenth  day  of  the  month  (or  if  Sunday,  then  the  pre- 
ceding day),  and  announce  by  circular  the  average  obtained  from  the 
statements  so  presented,  and  the  wages  for  the  current  month  shall  be  based 
on  the  average  so  obtained. 

For  the  month  of  May  the  operators  to  furnish  prices  shall  be  chosen  on 
the  20th  inst.,  and  the  prices  shall  be  furnished  and  announced  on  the 
25th  inst. 

Fourth,  Provision  is  hereby  made  for  future  arbitration  in  the  following 
manner  : 

I.  All  questions  of  disagreement  in  any  district,  excepting  wages,  which 
cannot  be  settled  by  the  parties  directly  interested,  shall  be  referred  to  a 
district  board  of  arbitration,  to  consist  of  three  members  on  each  side,  with 
power,  in  case  of  disagreement,  to  select  an  umpire  whose  decision  shall  be 
final.    No  colliery  or  district  to  stop  work  pending  such  arbitration. 

II.  If  any  question  arises  involving  the  whole  county,  a  board  of 
arbitration  shall  be  chosen,  consisting  of  five  members  on  each  side,  with 
the  same  rights  and  duties  as  for  district  boards. 

Signed  on  behalf  of  the  parties  hereto, 

WM.  KENDRICK, 

President  A.  B.  of  Trade. 
CHAS.  M.  HILL, 

Secretary  pro  tern.,  A.  B.  of  Trade. 
JOHN  W.  MORGAN, 
Pres.  pro  tern.,  Schuylkill  Co.  Ex.  Board  M.  and  L.  B.  Association. 
GEORGE  CORBETT, 
Secy.  Schuylkill  County  Ex.  Board  M.  and  L.  B.  Association. 
JOHN  P.  FRANCIS, 
THOMAS  LEONARD, 
MICHAEL  LAVVLER, 

Committee, 

And  the  following  was  the  decision  of  the  umpire  for  wages 
in  Schuylkill  County :  — 

DECISION  OF  THE  UMPIRE. 

The  umpire  mutually  chosen  by  the  Anthracite  Board  of  Trade  of  the 
one  part,  and  the  Miners'  and  Laborers'  Benevolent  Association  of  the 
other  part,  to  decide  the  question  of  wages  now  at  issue  before  them,  having 
received  and  fully  considered  the  written  propositions  and  arguments  of  the 
parties,  has  decided  and  established  the  basis  rates  of  wages  below  men- 
tioned, as  in  his  judgment  just,  both  to  the  operators  and  the  men  in  their 
employ;  viz., — 

Basis,  $2.75  at  Port  Carbon. 

Miners,  by  day's  work,  $13  per  week. 

Inside  laborers,  $11  per  week. 

Outside  laborers,  $10  per  week. 

Contract  work  to  be  reduced  ten  per  cent,  upon  the  prices  paid  under  the 
$3  basis  of  1869. 


140         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Wages  to  be  advanced  one  cent  for  every  three  cents  advanced  on  the 
price  of  coal  at  Port  Carbon  above  |2.75  per  ton,  and  to  decline  at  the  same 
rate  v^hen  coal  is  below  that  price,  down  to  $2.25  per  ton. 

The  articles  of  agreement  under  which  the  submission  was  made,  together 
with  the  agreements  and  statements  of  the  parties  laid  before  me,  are  hereto 
attached. 

WM.  ELWELL,  Umpire. 

PoTTSviLLE,  May  17,  1871. 

This  result  was  hailed  throughout  the  entire  region  as  a  set- 
tlement of  troubles  for  the  year ;  not  only  that,  but  it  was 
believed  that  an  era  of  peace  had  at  last  dawned  on  the  trou- 
bled coal  regions.  It  is  true,  that  under  the  agreement  the 
decision  had  to  be  accepted  by  both  parties,  and  that  the  result 
was  not  satisfactory  to  a  portion  of  the  men,  who  received  it 
grumblingly,  thinking  that  the  umpire  should  have  decided  in 
favor  of  the  three-dollar  basis.  At  some  collieries,  also,  there 
was  trouble  over  the  employment  of  some  men  who  were  not 
members  of  the  Workingmen's  Benevolent  Association ;  but 
these  troubles  were  soon  adjusted,  and  all  the  collieries  were  in 
full  operation  under  the  award  of  the  umpire. 

All  these  anticipations  were  doomed  to  disappointment,  as 
the  terms  of  the  decision  remained  in  force  only  until  Septem- 
ber. Coal  having  fallen  at  this  time  below  the  basis  of  f  2.75, 
the  loaders  of  the  Thomas  Coal  Company,  in  flagrant  violation 
of  the  award  of  the  umpire,  demanded  an  advance  equal  to  the 
basis  rates  for  the  year,  and  ceased  work.  The  officers  of  the 
Workingmen's  Benevolent  Association  used  their  efforts  in  favor 
of  adhering  to  the  basis,  and  the  difficulty  was  on  the  point  of 
adjustment,  when  the  company  acceded  to  the  demand,  and 
entered  into  a  written  agreement  with  all  their  employes,  includ- 
ing even  the  miners,  who  had  not  asked  an  advance,  and  prom- 
ised not  only  to  pay  wages  on  a  fixed  basis  of  $2.75  for  the 
balance  of  the  year,  but  also  to  pay  any  deficiency  that  had 
occurred  in  the  previous  months.  Of  course  the  men  at  the 
other  collieries  in  the  vicinity  demanded  the  same  agreement. 
It  was  resisted  at  some,  and  the  men  struck ;  at  others  they 
agreed,  under  protest,  to  pay  it  until  action  was  taken  by  the 
committees.  Appeals  were  made  to  the  officers  of  the  Work- 
ingmen's Benevolent  Association,  and  the  men,  to  adhere  to  the 
agreement,  notwithstanding  its  violation  by  the  Thomas  Coal 
Company,  and  many  of  them  did  use  their  exertion  to  maintain 
the  agreement ;  but  gradually  one  by  one  agreed  to  pay  on  a 
basis  of  12.75  for  the  balance  of  the  year,  and  the  president  of 


INDUSTKIAL  CONCILIATION  AND  AKBITEATION.  141 

the  Workingmen's  Benevolent  Association  candidly  admitted 
that  it  was  impossible  for  them  to  check  the  current,  because 
so  many  had  already  acquiesced  rather  than  have  a  strike. 

This  action  ended  arbitration  in  the  anthracite  region.  So 
far  as  we  are  aware,  no  attempt  has  since  been  made  to  adjust 
any  wages  difficulty  in  this  region  by  the  use  of  this  method. 

With  whom  should  rest  the  blame  of  this  failure,  can  be 
judged  from  the  details  we  have  given.  The  better  class  of  the 
workmen  regarded  the  violation  of  faith,  on  the  part  of  their 
class,  with  a  deep  sense  of  shame  and  a  dread  of  consequences ; 
but  the  action  was  so  rapid  that  the  mischief  was  done  before 
they  could  make  their  influence  felt.  On  the  other  hand,  the 
hasty  and  unwise  action  of  the  Thomas  Coal  Company  was  by  no 
means  blameless,  and  was  not  so  regarded  by  the  Anthracite 
Board  of  Trade,  as  the  company  was  expelled  from  membership. 

The  effect  of  the  repudiation  of  the  umpire's  decision,  on  the 
future  relations  of  employers  and  employed,  cannot  be  esti- 
mated. Gov.  Hartranft  in  his  last  message  to  the  legislature  of 
Pennsylvania  expresses  the  belief  that  those  horrible  pages  in 
the  history  of  the  anthracite  industry,  connected  with  the  Molly 
Maguire  outrages,  the  deep  disgrace  to  the  State,  and  the  hang- 
ing of  nearly  a  score  of  its  citizens  for  participation  in  these 
outrages,  might  have  been  avoided  by  the  adoption  and  prac- 
tice of  arbitration.  If  this  opinion  is  correct,  the  utmost  haste 
should  be  made  to  rehabilitate  arbitration,  not  only  in  the  an- 
thracite industry  but  in  all  the  industries  of  Pennsylvania. 

The  attempt  at  arbitration,  however,  was  not  wholly  without 
beneficial  effect.  The  chagrin  of  a  very  large  portion  of  the 
workmen  at  what  they  regarded  as  a  violation  of  good  faith  on 
their  part  was  so  great  that  they  resolved  that  the  spirit  of  the 
decision  should  be  carried  out  in  1872,  even  if  the  letter  had 
been  violated  in  1871.  And  in  virtual  accordance  with  the  sec- 
ond section  of  article  fourth  of  the  agreement  of  May  11,  1871, 
a  committee  of  five  each,  from  the  Anthracite  Board  of  Trade, 
and  the  Miners'  and  Laborers'  Benevolent  Association  of 
Schuylkill  County,  met  at  Pottsville,  Jan.  6,  1872,  and  agreed 
upon  the  basis  of  wages  for  1872  as  follows  :  — 

ARTICLES  OF  AGREEMENT 

Made  and  entered  into  between  the  Anthracite  Board  of  Trade  of  the  SchuylHll 
Region,  and  the  Miners^  and  Laborers^  Benevolent  Association  of  Schuylkill 
County,  this  sixth  day  of  January,  1872. 

First,  Wages  to  be  fixed  on  a  basis  of  two  dollars  and  fifty  cents  ($2.50) 


142         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


per  ton  for  coal  at  Port  Carbon,  with  outside  labor  at  ten  dollars  ($10)  per 
week;  inside  labor  at  eleven  dollars  ($11)  per  week;  miners,  by  day  work, 
at  thirteen  dollars  ($13)  per  week;  and  contract  work  at  a  reduction  of  eight 
and  one-third  (8|)  per  cent  below  the  basis  price  at  $2.75  last  year. 

Second^  All  advance  and  decline  to  be  at  the  rate  of  one  (1)  per  cent  on 
wages  for  every  three  (3)  cents  advance  or  decline  iu  the  price  of  coal;  with 
the  understanding  that  when  coal  reaches  $2.75  or  upwards,  the  wages  shall 
be  the  same  as  at  the  same  price  of  coal  in  1871 :  provided,  that  wages  shall 
not  be  less  than  the  $2.^0  basis  price  for  more  than  two  months  out  of  the 
year,  and  that  those  two  months  shall  be  between  April  1  and  Dec.  31,  and 
that  in  those  two  months  the  wages  shall  not  be  less  than  at  a  $2.25  rate. 

Third,  Prices  shall  be  obtained  from  a  list  of  all  collieries  shipping  over 
the  Philadelphia  and  Reading  Railroad  over  thirty  thousand  (30,000)  tons 
in  1871,  and  none  shall  be  chosen  a  second  time  until  the  list  is  exhausted. 
Five  operators  shall  be  chosen,  by  lot,  from  this  list  the  first  day  of  each 
month  (if  Sunday,  then  the  day  preceding)  by  four  persons,  two  to  be  cho- 
sen by  the  Anthracite  Board  of  Trade,  and  two  by  the  Miners'  and  Laborers' 
Benevolent  Association.  The  operators  so  chosen  shall  be  required  to  for- 
ward to  each  side  of  the  committee  chosen  as  above,  on  or  before  the  10th  of 
the  month,  a  statement  of  the  average  of  all  sales  of  coal  (excepting  pea 
coal)  for  the  preceding  month,  calculated  at  Port  Carbon.  The  committee 
shall  meet  on  the  10th  of  the  month  (or,  if  Sunday,  then  the  day  preceding) , 
and  announce  by  circular  the  average  obtained  from  the  statements  so  pre- 
sented; and  the  wages  for  the  current  month  shall  be  based  upon  the  average 
so  obtained.  For  the  month  of  January,  it  is  agreed  that  wages  shall  be 
paid  on  the  $2.50  basis. 

Signed  at  Pottsville,  Penn.,  on  the  sixth  day  of  January,  1872,  on  behalf 
of  the  parties  hereto. 


The  following  resolution  was  unanimously  adopted  by  the 
committees :  — 

Whereas,  There  having  been  some  complaints  about  the  unequal  prices  of 
powder  and  oil  throughout  the  country: 

"  Resolved,  That,  whenever  difficulties  occur  on  that  question,  it  shall  be 
the  duty  of  the  president  of  the  Anthracite  Board  of  Trade,  and  the  presi- 
dent of  the  Miners'  and  Laborers'  Benevolent  Association,  to  investigate  the 
matter  either  in  person  or  by  deputy,  and  endeavor  to  have  it  amicably 
arranged." 

By  this  agreement  the  basis  wages  were  to  be  paid  for  Janu- 
ary and  for  the  months  following  as  per  table  below. 

The  prices  of  coal  (excluding  pea)  were  for  the  sales  of  the 


For  the  A.  B.  of  T. 
WM.  KEN^DRICK, 
J.  K.  SIGFRIED, 
GEO.  W.  COLE, 
J.  L.  NUTTIXG, 


For  the  M.  and  L.  B.  A, 
JNO.  J.  WILLIAMS, 
JAMES  RYAN,  JuN., 


JNO.  H.  DO DS WORTH, 


WM.  J.  Mccarty, 

MICHAEL  FARRELL. 


CHAS.  M.  HILL,  Jun. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


143 


month  preceding  that  in  which  here  entered,  but  were  to  fix 
wages  for  the  month  given. 

As  per  agreement  the  reduction  allowed  for  two  months  was 
taken  off  in  April  and  May. 


18758. 


Pkices  Eepoeted  at  Pobt  Carbon. 


Highest. 

Second. 

Third. 

Fourth. 

Lowest. 

Average. 

January 

February 

$2  36^6^ 

$2  273-4g 

$2  25^V 

$2 

17-*- 

$2  30^3^ 

March  , 

2  33 

2  31^3_ 

2  20 

2  04^8_ 

2  22^3^ 

April  ... 

2  38 

2  17 

2  091 

2  05 

2 

03 

2  144 

2 

May 

2  091- 

2  08 

1  98 

1  96,9_ 

1 

95 

2  Ol^V 

June 

2  19 

2  131 

2  09 

1  881 

2  07^ 

July  . 

2  11 

2  07 

2  01 

1  91 

1 

85 

1  99 

August . 

2  051 

2  04^ 

1  97 

1  80 

1 

73 

September  . 

2  31f 

2  15 

1  80 

2  09 

October 

2  23i 

2  19 

1  97^ 

2  13} 

November 

2  45^% 

2  38^3_ 

2  32 

2  38,V 

December 

2  43^s^ 

2  26i 

2  27^ 

2  2e^\ 

2 

21 

2  29^3^ 

Averages 

$2  27^V 

$2  19^9^ 

$2  09 

$2  02^2_ 

11 

99 

$2  14^3^ 

Wages  paid  per  Week. 

1872. 

PAID  AT 

Miners. 

Inside 
Labor. 

Outside 
Labor. 

January 

Basis  .... 

$13  00 

$11  00 

$10  00 

February 

t( 

13  00 

11  00 

10  00 

March  . 

(( 

13  00 

11  00 

10  00 

April 

8^  per  cent  reduction  . 

11  93 

10  09 

9  18 

May 

81  *♦ 

11  93 

10  09 

9  18 

June 

Basis  .... 

13  00 

11  00 

10  00 

July 

13  00 

11  00 

10  00 

August  . 

13  00 

11  00 

10  00 

September 

13  00 

11  00 

10  00 

October  . 

13  00 

11  00 

10  00 

November 

13  00 

11  00 

10  00 

December 

Averages 

$12  82| 

$10  84| 

$9  86^ 

144         INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 


The  blank  spaces  in  the  table  are  on  account  of  operators  failing  to  report 
prices  when  called  upon. 

A  noticeable  event  of  the  j^ear  was  the  agreement  made  at 
Pottsville,  on  Aug.  27,  for  the  sale  of  coal  to  line  and  city 
trade  at  prices  to  be  regulated  by  a  committee  each  month,  after 
the  Scranton  sales. 

The  agreement  was  signed  by  fifty-two  firms,  representing 
three-fourths  of  the  trade  ;  a  number  of  those  declining  to  sign 
the  agreement  pledged  themselves,  however,  to  adopt  the  same 
rates. 

This  fixed  the  basis  for  coal  for  calculating  wages  for  that 
year. 

In  December,  1872,  committees  of  five  again  met  to  arrange 
the  basis  and  wages  for  1873. 

*'  The  miners  demanded  a  minimum  basis  of  $2.75  for  contract  work,  and 
$3.00  for  day's  labor.  The  operators  offered  a  basis  of  $2.50  and  $2.75,  the 
same  as  in  1872,  running  down  to  $2.00  minimum.  This  the  committee 
declined,  and  referred  the  offer  to  the  different  divisions  throughout  the 
county  forthek  action.  On  the  10th  inst.,  the  Executive  Committee  of  the 
Workingmen's  Benevolent  Association  met,  and,  after  discussing  the  whole 
question,  made  an  offer  of  compromise  to  the  operators,  making  the  basis 
for  contract  work  $2.50,  and  for  day's  labor  $2.75  minimum,  with  an  advance 
of  one  cent  in  wages  for  every  three  cents  advance  in  the  price  of  coal,  and 
no  work  to  be  done  until  the  proposition  is  accepted.  They  consider  this  as 
their  ultimatum. 

"  The  Anthracite  Board  of  Trade,  after  discussing  the  compromise  made 
by  the  Workingmen's  Benevolent  Association,  resolved  to  accept  it." 

Similar  success,  however,  did  not  attend  the  attempt  to  fix 
a  basis  and  wages  for  1874.  In  January  of  this  year  the  oper- 
ators' committee,  in  view  of  the  depression  caused  by  the  panic 
of  1873,  proposed  a  reduction  of  twenty  per  cent,  which  the 
miners  refused  ;  and  a  five  months'  strike  ensued,  the  miners 
at  the  end  of  this  time  yielding,  and  resuming  work  at  the 
reduction  proposed. 

It  is  not  necessary  to  give  further  details  of  the  operation  of 
the  basis  system  and  sliding  scale.  It  has  become  the  unwritten 
law  of  the  anthracite  regions ;  and  while  under  its  operation, 
or  rather  in  order  to  arrive  at  a  basis,  some  very  important  and 
long-continued  strikes  have  occurred,  the  basis  system  has  done 
away  with  the  constant  annoyance  of  petty  strikes  about  wages, 
and,  the  basis  and  scale  once  settled,  during  its  operation  there 
can  be  no  question  as  to  the  rate  of  wages  to  be  paid. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  145 


Arbitration  in  the  Coal  Mines  of  the  Pittsburgh, 
Penn.,  District. 

Shortly  after  the  return  of  the  writer  from  his  investigation 
into  the  practical  operation  of  arbitration  and  conciliation  in 
England,  upon  the  request  of  the  Chamber  of  Commerce,  he 
delivered  an  address  before  the  manufacturers  and  workingmen 
of  Pittsburgh  and  vicinity  on  this  subject.  The  address  was 
printed  in  pamphlet  form,  and  widely  circulated  among  the 
workingmen.  In  the  following  summer,  whether  as  a  result  of 
the  discussion  following  this  address  or  not  we  are  unable  to 
say,  Mr.  David  Fitzgerald  and  Mr.  D.  R.  Jones,  president  and 
secretary  respectively  of  the  Miners'  Union,  addressed  a  letter 
to  the  Pittsburgh  Coal  Exchange,  virtually  suggesting  arbitra- 
tion for  settling  the  constant  disputes  that  were  characteristic 
of  the  coal  trade  of  this  region.  The  president  of  the  Coal 
Exchange,  as  it  afterwards  appeared,  without  convening  the 
Exchange,  answered  in  its  behalf,  to  the  effect  that  the  Ex- 
change could  not  take  action  on  such  a  subject.  This  was  no 
doubt  a  fact ;  but  if  the  disposition  had  existed  it  would  have 
been  possible  to  have  met  the  objection  as  the  Pittsburgh  iron 
manufacturers  do,  —  by  calling  a  meeting  of  the  trade  outside 
of  the  association. 

It  was  further  a  fact  that  the  Coal  Exchange  as  constituted 
only  represented  those  mines  that  were  situated  on  the  Monon- 
gahela  River,  and  which  made  all  or  most  of  their  shipments  by 
river. 

With  a  knowledge  of  these  facts,  and  also  assurances  that  a 
large  number  of  the  proprietors  of  the  railroad  mines,  so  called, 
or  the  mines  located  on  the  railroad  near  Pittsburgh,  and  which 
did  most  of  their  shipping  by  rail,  as  well  as  some  of  the  river 
mines,  favored  arbitration  ;  the  writer  endeavored  to  bring  about 
a  meeting  of  committees  representing  the  operators  and  miners, 
and  after  some  effort  succeeded. 

A  call  for  a  meeting  of  operators  was  issued  as  follows :  — 

Pittsburgh,  Sept.  20,  1879. 

To  the  River  and  Railroad  Coal  Operators : 

Gentlemen,  —  The  interest  I  have  taken  in  endeavoring  to  inaugurate 
some  better  method  of  settling  disputes  between  employers  and  employed 
than  strikes  and  lock-outs  is  my  excuse  for  this  circular.    On  the  21st  of 
July  a  letter  was  addressed  to  the  Coal  Exchange  by  a  committee  of  miners, 
19 


146         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


suggesting  a  conference  to  exchange  views  upon  the  advisability  and  practic- 
ability of  devising  some  plan  by  which  differences  in  the  future  could  be 
settled.  Through  a  misunderstanding  as  to  the  intention  and  scope  of  this 
letter,  it  was  not  as  fully  considered,  or  brought  to  the  attention  of  the  oper- 
ators as  widely,  as  was  intended.  It  has  occurred  to  me  that  now  might  be 
a  favorable  time  to  endeavor  to  bring  about  such  a  conference  as  was  sug- 
gested. I  am  assured  that  a  committee  of  miners  v^ill  be  willing  to  meet  a 
committee  of  operators,  if  such  is  appointed,  to  discuss  and  endeavor  to 
suggest  some  plan  to  put  an  end  to  strikes  and  lock-outs. 

After  consultation  with  several  operators,  I  am  led  to  believe  that  such  a 
movement  would  be  received  with  favor  by  the  operators ;  and  I  therefore 
request  that  you  attend  a  meeting  of  river  and  railroad  operators  at  the  Iron 
Association  Rooms,  77  Fourth  Avenue,  Pittsburgh,  Wednesday,  Sept.  24, 
1879,  at  ten  a.  m.,  to  consider  the  propriety  of  appointing  such  a  committee. 

I  do  not  desire  to  be  impertinent,  but  it  has  been  suggested,  that  in  view 
of  the  investigation  of  the  practical  workings  of  arbitration  I  have  made  as 
a  commissioner  of  the  State,  and  as  I  am  in  no  way  connected  with  either 
party,  that  the  movement  might  be  inaugurated  in  this  way  without  either 
operators  or  miners  being  responsible  for  its  outcome. 

All  operators  are  earnestly  invited  to  be  present  at  the  meeting.  It  is 
suggested  that  the  call  be  confidential  until  after  the  meeting  is  held. 

Very  truly, 

JOS.  D.  WEEKS. 

We  heartily  indorse  the  above  call,  and  earnestly  urge  every  operator  to 
be  present,  that  a  full  discussion  may  be  had. 

New  York  and  Cleveland  Gas  Coal  Company. 

The  Fort  Pitt  Coal  Company. 

Hartley  &  Marshall. 

Jno.  McIntyre. 

Hampton  Coal  Mines. 

Dickson,  Stewart,  &  Co. 

Joseph  Walton  &  Co. 

George  Lysle  &  Sons. 

Foster,  Clark,  &  Wood. 

Three  of  the  indorsers  to  this  paper  were  river  operators,  and 
some  of  them  among  the  largest.  The  remainder  were  rail- 
road operators. 

A  meeting  of  the  miners  was  called  for  the  same  day  as  that 
of  the  operators.  The  two  bodies  met  at  different  places  in 
Pittsburgh,  Sept.  24,  1879,  and  chose  committees  of  conference 
which  met  the  next  day,  Sept.  25.  At  this  meeting  a  board  of 
arbitration  was  substantially  agreed  upon,  and  a  sub-committee 
appointed  to  adopt  rules  for  its  government. 

These  rules  were  presented  to  the  committee  at  a  meeting 
held  Oct.  6.  The  operators  objected  to  certain  parts  of  them, 
the  objection  being  chiefly  to  the  character  of  the  questions  to 


INDUSTRIAL  CONCELIATION  AND  ARBITRATION.  147 


be  submitted  to  the  board  ;  but,  in  the  end,  they  waived  their 
objections,  and,  with  some  slight  amendments,  the  rules  as  pre- 
sented were  adopted  by  the  conference  committee  and  ordered 
to  be  submitted  to  separate  meetings  of  miners  and  operators 
to  be  held  Oct.  21. 

At  these  meetings  the  operators  at  once  adopted  the  rules  as 
agreed  upon ;  but  the  miners  proposed  certain  amendments,  and 
demanded  that  they  be  adopted  or  rejected  by  the  24th. 

To  one  of  these,  which  reads  as  follows,  the  operators  took 
decided  objections :  — 

"  Twenty-fourth  If  any  miner  representative  or  operator  representa- 
tive shall  become  incapable  of  serving  on  this  board,  by  reason  of  negligence 
or  crime,  the  party  whom  he  represents  shall  have  power  to  censure,  suspend, 
or  expel  him  by  a  two-thirds  vote  of  the  party  aggrieved. ' ' 

The  chief  objection  to  this  was  that  it  was  virtually  a  threat 
to  any  member  who  should  exercise  his  individual  judgment, 
and  act  as  the  arguments  and  facts  presented  should  dictate. 
The  operators  again,  however,  waived  their  objections,  and 
adopted  the  amendments  proposed.  A  copy  of  the  rules  as 
finally  adopted  is  as  follows :  — 

Rules  for  the  Formation  and  Government  of  a  Board  of  Con- 
ciliation AND  Arbitration  for  the  Coal  Mines  of  Western 
Pennsylvania. 

[The  following  correspondence  gives  the  official  announcements  of  the 
adoption  of  the  within  rules  by  miners  and  operators :  — 

Pittsburgh,  Oct.  21,  1879. 

Jos.  D.  Weeks,  Secretary. 

Dear  Sir,  — Per  instructions  from  Miners'  Arbitration  Convention  of  this 
date,  I  hereby  transmit  to  you  an  official  copy  of  the  rules  for  the  government 
of  a  board  of  arbitration,  with  changes  and  amendments  as  adopted  by  the 
delegates  after  a  considerate  and  an  exhaustive  discussion  of  the  same.  The 
concurrence  of  the  operators  to  them  is  respectfully  requested  on  or  before 
Friday  evening,  Oct.  24,  1879. 

Very  respectfully, 

D.  R.  JONES,  Gen.  Secretary. 

Pittsburgh,  Penk.,  Oct.  24,  1879. 

D.  R.  Jones,  General  Secretary. 

Dear  Sir,  —  I  am  instructed  to  inform  you  that  at  the  convention  of  coal 
operators  held  this  day,  the  changes  and  amendments  made  by  the  Miners' 
Convention  in  the  rules  of  the  Board  of  Conciliation  and  Arbitration  were 
concurred  in. 

I  am  also  instructed  to  call  a  meeting  of  operators  to  elect  members  of  the 


148         INDUSTRIAL  CONCILIATION  AND  ARBITEATION. 


board  on  the  same  day  that  the  miners  meet  for  the  same  purpose,  and  would 
thank  you  to  inform  me  of  the  date  of  the  miners'  meeting  at  your  earliest 
convenience. 

Very  truly, 

JOS.  D.  WEEKS,  Secretary.'] 

First.  The  title  of  this  board  shall  be,  "  The  Board  of  Conciliation  and 
Arbitration  for  the  Coal  Mines  of  Western  Pennsylvania." 

Second.  The  object  of  said  board  shall  be.  First,  to  settle  all  questions  of 
wages.  Second,  to  determine  such  other  general  matters  affecting  the  inter- 
ests of  either  party  as  may  be  submitted  to  it  from  time  to  time  by  operator 
or  miner,  and  by  conciliatory  means  to  use  its  influence  to  prevent  disputes 
and  put  an  end  to  any  that  may  arise;  local  questions  may  be  referred  to  the 
board  by  either  the  miner  or  operator  for  adjustment. 

Third.  The  board  shall  consist  of  eighteen  members,  four  from  the  rail- 
road miners,  four  from  the  river  miners,  four  from  the  railroad  operators, 
four  from  the  river  operators,  and  a  miners'  secretary,  and  an  operators' 
secretary  at  large. 

Fourth.  The  operators  and  miners  shall  each  select  their  own  representa- 
tives in  such  a  way  as  shall  seem  to  them  best:  provided  only,  that,  with  the 
exception  of  the  secretaries,  the  representatives  so  selected  shall  be  actively 
engaged  in  mining  or  in  operating  mines. 

Fifth.  The  members  of  the  board  shall  be  chosen  the  second  Tuesday  in 
January,  and  shall  hold  office  for  one  year  and  be  eligible  for  re-election. 
The  board  so  elected  shall  meet  for  organization,  at  the  call  of  the  president, 
within  two  weeks  succeeding  such  election. 

[Note.  —  It  is  understood  that  the  members  of  the  board  and  officers  elected 
at  the  adoptign  of  these  rules  shall  serve  uutil  the  tiuie  of  the  regular  election  in 
January.] 

Sixth.  If  any  representative  die  or  resign,  or  cease  to  be  qualified  by  ter- 
minating his  active  connection  with  coal  mining,  a  successor  shall  be  chosen 
within  one  month  in  the  same  manner  as  is  provided  in  the  case  of  an 
annual  election. 

Seventh.  Each  representative  shall  be  deemed  fully  authorized  to  act  for 
the  parties  which  have  elected  him. 

Eighth.  At  the  meeting  of  the  board,  to  be  held  in  January  of  each  year, 
it  shall  elect  a  president  and  vice-president,  one  from  the  operators,  the  other 
from  the  miners,  who  shall  continue  in  office  for  one  year  and  be  eligible  for 
re-election.  The  president,  vice-president,  and  secretaries  shall  be  ex-officio 
members  of  all  committees. 

Ninth.  At  the  same  meeting  of  the  board  a  conference  committee  shall 
be  chosen,  to  consist  of  one  representative  each  of  the  river  and  railroad 
operators,  and  of  the  river  and  railroad  miners,  and  the  secretaries.  The 
operators  and  miners  shall  each  elect  their  own  representatives  on  the  com- 
mittee. 

Tenth.  All  questions  shall,  in  the  first  instance,  be  referred  to  the  con- 
ference committee,  who  shall  investigate  and  endeavor  to  settle  the  matters 
so  referred  to  it,  but  shall  have  no  power  to  make  an  award,  unless  by  con- 
sent of  the  parties.  In  the  event  of  the  committee  being  unable  to  settle  any 
question,  it  shall,  as  early  as  possible,  be  referred  to  the  board. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  149 


Eleventh.  The  president  shall  preside  over  all  meetings  of  the  board,  and 
in  his  absence  the  vice-president,  and,  in  the  absence  of  both  president  and 
vice-president,  a  chairman  shall  be  elected  by  the  meeting. 

Twelfth.  All  votes  shall  be  taken  at  the  board  by  a  show  of  hands,  miless 
a  ballot  is  called  for  by  any  member.  The  president  and  vice-president  shall 
be  entitled  to  vote  on  all  questions,  but  shall  have  no  casting  vote  in  case  of 
a  tie.  If  at  any  meeting  of  the  board  the  operator  and  miner  representatives 
are  unequal,  all  shall  have  a  right  to  discuss  any  questions  that  may  arise; 
but  only  an  equal  number  of  each  shall  vote,  the  representative  of  the  same 
section  as  the  absent  member  not  being  entitled  to  vote.  The  decision  of  the 
majority  of  the  board  shall  be  final  and  binding  on  both  parties 

Thirteenth.  In  case  of  a  tie  vote  in  the  board,  it  shall  appoint  an  inde- 
pendent referee,  whose  decision  in  the  matter  in  question  shall  be  final  and 
binding;  but  said  referee  shall  be  the  unanimous  choice  of  the  board,  and 
his  selection  and  decision  shall  not  occupy  more  than  five  working  days. 

Fourteenth.  Immediately  upon  the  organization  of  the  board  it  shall  pro- 
ceed to  fix  a  scale  of  prices  to  be  paid  for  digging  coal. 

Fifteenth.  All  questions  requiring  investigation  shall  be  submitted  to  the 
conference  committee  or  to  the  board,  as  the  case  may  be,  in  writing,  and 
shall  be  supplemented  by  such  verbal  evidence  or  explanation  as  they  may 
think  needful. 

Sixteenth.  No  subject  shall  be  brought  forward  at  any  meeting  of  the 
conference  committee  or  of  the  board,  unless  notice  thereof  be  given  to  the 
secretaries  five  clear  days  before  the  meeting  at  which  it  is  to  be  considered. 

Seventeenth.  The  conference  committee  shall  meet  for  the  transaction  of 
business  prior  to  the  half-yearly  meetings,  and,  in  addition,  as  often  as  busi- 
ness requires.  The  place  of  meeting  shall  be  arranged  between  the  president 
and  secretaries  in  default  of  any  special  direction. 

Eighteenth.  In  case  of  any  difference  or  dispute  arising  having  reference 
to  the  river  or  railroad  interest  exclusively,  it  shall  be  the  privilege  of  the 
interest  involved  to  ask  that  the  difference  or  dispute  be  settled  by  the  repre- 
sentatives of  the  river  or  railroad  mines,  together  with  the  secretaries. 

Nineteenth.  The  board  shall  meet  for  the  transaction  of  business  twice  a 
year,  in  January  and  July;  but  on  a  requisition  to  the  president,  signed  by 
five  members  of  the  board,  specifying  the  nature  of  the  business  to  be  tran- 
sacted, and  stating  that  it  has  been  submitted  to  the  conference  committee 
and  left  undecided  by  them,  he  shall,  within  five  days,  convene  a  meeting  of 
the  board.  The  circular  calling  such  meeting  shall  specify  the  nature  of  the 
business  for  consideration. 

Twentieth.  Pending  the  discussion  and  decision  of  any  difference  or  dis- 
pute, there  shall  be  no  lock-out  on  the  part  of  the  operators,  or  strike  on  the 
part  of  the  miners. 

Twenty-First.  Neither  operators  nor  miners  shall  interfere  with  any  man 
on  account  of  his  being  a  union  or  non-union  man. 

Twenty- Second.  Any  expenses  incurred  by  this  board  shall  be  borne 
equally  by  both  parties,  the  operators  paying  one-half  and  the  miners  paying 
one-half;  and  it  shall  be  the  duty  of  the  conference  committee  to  establish 
the  most  convenient  arrangements  for  collecting  what  may  be  needed  to  meet 
such  expenses. 


150         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Twenty-Third.  Parties  may  at  any  time  join  this  board  by  filing  with 
the  two  secretaries  an  agreement  to  be  bound  by  these  rules. 

Twenty-Fourth.  If  any  miner  representative  or  operator  representative 
shall  become  incapable  of  serving  on  this  board,  by  reason  of  negligence  or 
crime,  the  party  whom  he  represents  shall  have  power  to  censure,  suspend, 
or  expel  him  by  a  two-thirds  vote  of  the  party  aggrieved. 

Twenty-Fifth.  No  alteration  shall  be  made  in  these  rules  except  at  the 
half-yearly  meeting  of  the  board,  nor  then,  unless  notice  in  writing  of  the 
proposed  change  be  given  to  the  secretaries  at  least  one  calendar  month  be- 
fore such  meeting. 

Attest:  JOS.  D.  WEEKS,  D.  R.  JONES, 

Operators^  Secretary.  Miners''  Secretary. 

Under  these  rules  the  operators  and  miners  elected  their 
members  of  the  board.  It  was  found  impossible  to  prevail  on 
some  of  the  more  prominent  river  operators  to  join  the  board ; 
and  as  a  result  it  was  organized  by  the  representatives  of  the 
railroad  miners  only. 

The  members  of  the  board  elected  were  as  follows :  — 

Representing  the  railroad  operators,  William  A.  Mcintosh, 
S.  McCrickart,  D.  Reisinger,  Alexander  Patterson,  and  Joseph 
D.  Weeks  at  large.  Representing  the  river  miners,  John 
Beveridge,  F.  Gates,  M.  T.  Conway,  William  Gallagher,  and  D. 
R.  Jones  at  large.  At  the  first  meeting  of  this  board,  held  Oct. 
29,  William  A.  Mcintosh  was  elected  president,  John  Beveridge 
vice-president,  Joseph  D.  Weeks  operators'  secretary,  and  D.  R. 
Jones  miners'  secretary. 

Under  the  fourteenth  rule  of  the  board,  the  first  business  of 
the  organization  was  the  fixing  of  a  scale  of  prices  for  mining 
coal.  The  miners  proposed  that  the  board  adopt  as  a  basis  of 
the  scale  the  price  paid  in  the  iron  mills  of  Pittsburgh  for  boil- 
ing iron :  arguing  that  a  large  amount  of  the  coal  mined  in  the 
pits  represented,  entering  into  a  manufacture  of  iron,  decided 
largely  the  price  of  coal ;  and,  further,  that,  the  price  of  boiling 
being  fixed,  the  miners  would  always  know  what  the  basis  was. 

The  operators  answered  that  not  one-fourth  of  the  coal  pro- 
duced by  the  mines  represented  was  used  in  the  iron  mills  of 
Pittsburgh,  and  that  it  was  illogical  to  base  the  price  of  mining 
coal  on  the  price  paid  some  other  labor  when  it  could  be  based 
on  the  price  of  the  product  of  mining;  and  they  proposed  that 
the  price  of  mining  be  based  on  the  price  of  coal  in  the  yard  of 
the  Pennsylvania  Road  at  Pittsburgh. 

The  miners  insisted  on  their  basis;  and  again,  rather  than 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  151 

have  a  dead-lock  over  preliminaries,  the  operators  yielded,  and 
voted  for  the  basis  at  the  price  of  boiling. 

Following  this,  three  scales  were  presented,  two  by  the  miners 
and  one  by  the  operators.  After  a  discussion  lasting  five  and  a 
half  days,  no  agreement  as  to  a  scale  could  be  reached,  and  the 
following  was  adopted :  — 

"  Resolved,  1st,  That  the  price  of  digging  coal  shall  be  three  and  one-half 
cents  per  bushel  for  the  month  of  November,  1879. 

"  Resolved,  2d,  That  in  making  this  advance  of  one-half  cent  per  bushel 
by  said  board  of  arbitrations,  that  the  miners  and  their  secretary  agree  to 
make  the  said  price  for  mining  coal  universal;  that  is  to  say,  on  the  Pan- 
Handle  and  Chartiers  Branch,  Montour  Run,  Saw-mill  Run,  Castle  Shannon 
and  Keeling  Works,  and  country  pits  around  Saw-mill  Run;  all  shippers  by 
rail  on  P.  V.  &  C.  Railway,  Connellsville,  Pennsylvania  Central,  and  Alle- 
gheny Valley  Railways. 

*'  Resolved,  3d,  That  the  acceptance  by  the  board  of  this  rate  of  mining 
to  cover  a  contingency  shall  in  no  wise  be  regarded  as  an  acceptance  of  this 
rate  as  a  basis  when  the  price  of  boiling  is  $5.50,  nor  shall  its  acceptance  at 
this  time  be  used  as  an  argument  for  or  against  such  a  basis." 

It  should  be  noted  that  this  price,  three  and  a  half  cents, 
was  the  demand  of  the  scale  of  the  miners  at  the  price  for 
boiling  that  was  ruling  at  the  time  it  was  made,  which  was 
regarded  by  the  operators  as  another  concession  to  the  miners. 

During  the  discussions  of  these  five  and  a  half  days,  a  ques- 
tion arose  as  to  the  selling  price  of  coal ;  and  to  prove  their 
assertions  correct  the  operators  permitted  the  miners'  repre- 
sentatives to  inspect  their  books  thoroughly,  not  only  as  to  the 
selling  price  of  coal  at  the  time,  but  its  price  even  in  the  past, 
and  even  permitted  an  inspection  of  balance-sheets  to  show 
profit  and  loss,  with  no  question  whether  such  privilege  was 
ever  before  allowed  employes. 

The  investigation  resulted  in  the  complete  vindication  of  the 
statements  of  the  operators. 

It  was  also  manifest  during  the  discussion,  that,  contrary  to 
the  spirit  and  letter  of  the  seventh  rule,  and  contrary  to  their 
statement  at  the  beginning  of  the  sessions,  the  miners'  repre- 
sentatives had  come  to  the  board  bound  by  instruction  as  to 
the  lowest  price  they  could  accept ;  and,  though  members  of 
the  board  honestly  confessed  that  their  scale  was  too  high,  they 
also  stated  that  they  did  not  dare,  with  the  twenty-fourth  rule 
enforced,  to  accept  a  lower  scale. 


152         INDUSTRIAL  CONCILIATION  AND  AEBITRATION. 

Pursuant  to  the  resolution  of  adjournment,  the  board  again 
met  on  Nov.  21,  and  again  endeavored  to  arrive  at  a  scale  of 
prices,  the  miners  still  adhering  to  the  old  basis  and  scale,  and 
the  operators  again  suggesting  a  scale  based  on  the  selling  price 
of  coal.  Meeting  after  meeting  was  held,  and,  as  it  seemed 
impossible  to  agree.  Judge  Collier  of  the  court  of  Common 
Pleas  of  Allegheny  County  was  selected  as  umpire  ;  but  unfor- 
tunately his  judicial  duties  were  such  as  to  compel  him  to 
decline  the  position.  Several  other  names  were  suggested,  but 
no  agreement  could  be  reached.  Failing  to  agree  upon  an 
umpire,  the  question  arose,  at  a  meeting  held  Dec.  4,  1879,  as 
to  the  price  to  be  paid  for  mining  during  the  month  of  Decem- 
ber ;  no  agreement  could  be  reached,  and  the  board  adjourned 
sine  die. 

It  is  evident  that  the  cause  of  the  failure  of  this  attempt  at 
arbitration  was  that  the  miners'  representatives  did  not  come 
to  the  board  with  full  powers  as  the  operators'  representatives 
did,  but  were  bound  by  the  instructions  of  the  convention 
which  appointed  them.  Failure  is  nearly  if  not  quite  inevita- 
ble under  such  circumstances.  The  very  intent  of  arbitration 
is  that  the  arbitrators  shall  come  to  the  arbitration  prepared  to 
hear  the  argument  and  facts,  and  decide  in  accordance  with 
these,  and  not  in  accordance  with  the  instructions  of  a  body 
that  have  not  heard  the  argument  nor  considered  all  the  facts. 
It  might  perhaps  be  said  that  there  was  a  reason  back  of  this 
for  the  failure,  and  that  was  the  suspicion  of  the  miners  that 
would  not  allow  them  to  believe  that  their  representatives 
would  be  honest  and  loyal  to  their  best  interests,  and  would  not 
decide  and  accept  the  best  result  under  the  circumstances  and 
in  view  of  all  the  facts :  this  suspicion  led  the  miners,  in  oppo- 
sition to  the  spirit  of  the  rules,  to  bind  their  representatives 
with  instructions,  and  hold  over  them  the  twenty-fourth  rule  if 
they  dared  to  disobey.  Under  such  circumstances  failure  was 
a  foregone  conclusion  from  the  first,  and  always  will  be  in 
similar  cases. 

Attempt  at  Arbitration  in  the  Shenango  Valley, 

Penn. 

At  the  time  the  coal  miners  and  operators  of  the  Pittsburgh 
District  were  organizing  a  board  of  arbitration,  and  endeavor- 


INDUSTRIAL  CONCILIATION  AND  AEBITRATION.  153 


ing  to  get  it  in  working  order,  a  similar  attempt  was  made  in 
the  Shenango  Valley,  and  with  a  like  result. 

The  miners  in  this  valley  made  a  demand  early  in  November, 
1879,  for  an  advance  of  ten  cents  per  ton  for  minhig. 

The  operators  refused  to  concede  the  advance,  and  asked  for 
a  conference  with  the  miners  to  consider  the  advisability  of 
resorting  to  arbitration  to  decide  this  question. 

This  conference  was  held  at  Sharon,  Nov.  14.  Several  meet- 
ings took  place,  and  a  code  of  rules  similar  in  most  of  their  fea- 
tures to  the  Pittsburgh  rules  were  adopted.  The  important 
variations  Irom  these  rules  were  the  following :  — 

"1.  The  object  of  this  board  shall  be  :  First,  to  determine  the  basis  price 
of  mining  coal,  and  all  questions  relating  to  the  same  as  may  be  submitted 
to  it  from  time  to  time.  Second,  by  conciliatory  means  use  its  influence  to 
prevent  disputes,  and  determine  any  that  may  arise  in  reference  to  the  afore- 
said basis  price  of  mining  coal. 

"  2.  The  board  shall  consist  of  one  operator  and  one  miner  representative 
from  each  mine  joining  the  board. 

"3.  When  two  or  more  mines  belong  to  the  same  proprietors,  either 
wholly  or  in  part,  each  mine  shall  have  the  right  to  be  represented  in  the 
board  ;  and  one  operator  may  represent  two  or  more  mines  in  which  he  is  an 
owner,  having  one  vote  for  each  mine  represented. 

"4.  The  '  basis  price'  to  be  paid  for  mining  coal  shall  be  based  on  the 
price  of  number  one  (1)  coal  at  Sharpsville. 

"  It  will  be  observed  that  these  rules  provide  for  the  basis,  and  the  board 
was  saved  the  trouble  experienced  at  Pittsbm-gh  on  this  subject.  However, 
when  the  scale  on  the  basis  adopted  came  to  be  discussed,  the  same  inability 
to  agree  became  manifest  at  once.  The  operators  offered  a  scale  of  one- 
fourth  the  market  price  of  No.  1  coal  at  ISharpsville  ;  the  miners  demanded 
one-third,  and,  failing  to  agree,  llie  board  dissolved. 

"  Here  again  one  cause  of  the  failure  seems  to  have  been  a  lack  of  power 
on  the  part  of  the  miners'  representatives,  they  having  to  refer  the  proposi- 
tion of  the  operators  to  a  mass  convention,  for  adoption  or  rejection." 

Another  vital  error,  both  here  and  at  Pittsburgh,  was  the 
failure  to  elect  an  umpire  until  the  situation  had  reached  a 
dead-lock.  It  is  true,  that,  in  a  great  many  successful  arbitra- 
tions, the  umpire  has  not  been  elected  until  the  board  has  failed 
to  agree ;  but  it  is  always  better  to  agree  upon  an  umpire  before 
entering  upon  the  discussion,  especially  if  there  is  a  probability 
that  an  agreement  will  not  be  reached ;  and  it  is  also  best  that 
he  should  be  present  at  the  meetings  and  discussions,  so  as  to 
be  able  to  decide  promptly. 

20 


154  INDUSTRIAL  CONCILIATION  AND  AKBITRATION. 


Arbitration  in  Ohio. 

In  Ohio  the  attention  not  only  of  employers  and  employed, 
but  of  the  legislature  and  the  people  of  the  State,  has  been 
repeatedly  called  to  industrial  arbitration,  and  to  its  advantages 
in  the  settlement  of  disputes  arising  between  labor  and  capital. 
Mr.  H.  J.  Walls,  the  Chief  of  the  Bureau  of  Labor  Statistics 
of  Ohio,  has  written  at  length  upon  this  topic  in  every  report 
he  has  made,  and  has  endeavored  to  excite  an  interest  in  the 
subject,  and  gather  information  as  to  its  operations,  by  inquiries 
extending  through  all  the  industries  of  the  State. 

Mr.  Andrew  Roy,  the  mine  inspector,  has  discussed  the  sub- 
ject in  his  reports  ;  and  the  only  report  made  by  his  successor, 
James  D.  Poston,  quoted,  in  full,  an  address  made  on  Industrial 
Arbitration  and  Conciliation  before  the  Chamber  of  Commerce 
of  Pittsburgh.  For  several  sessions  a  bill  for  establishing  courts 
of  arbitration  and  conciliation  was  before  the  legislature  of  the 
State,  though  of  its  fate  I  have  no  knowledge.  This  bill  pro- 
vided, — 

"  1.  That  when  employers  and  employes  met  and  agreed  upon  a  question 
of  wages,  etc.,  for  a  definite  period,  such  agreement  could  be  legally 
enforced. 

"  2.  That  if  they  met,  and  failed  to  agree,  an  arbitrator  mutually  accept- 
able might  be  called  in,  and  the  decision  to  be  legally  binding  for  a  definite 
term. 

'*  3.  If  the  parties  could  not  agree  upon  an  arbitrator,  then  the  judge  of 
a  court  of  record  would,  upon  notification,  be  required  to  act  as  arbitrator, 
and  his  decision  to  be  a  court  record,  and  legally  binding  upon  the  parties." 
(Ohio  Labor  Statistics  for  1878,  p.  67.) 

In  his  message  to  the  legislature  of  1880,  Gov.  Bishop  speaks 
of  arbitration  as  follows ;  — 

Boards  of  arbitration  and  conciliation  are  a  simple,  inexpensive,  and 
complete  plan  by  which  labor  troubles  may  be  avoided,  to  the  great  benefit 
of  employer  and  employe,  as  well  as  the  great  consuming  public,  which  is, 
at  times,  a  great  sufferer  from  '  strikes,'  over  which  it  in  no  manner  exercises 
any  control.  There  are  certain  prejudices  that  must  be  overcome  before  the 
plan  of  amicable  adjustment  will  be  generally  adopted. 

' '  Legislation  can  only  aid  in  bringing  about  this  certainly  desirable  sys- 
tem of  preventing  'strikes,'  by  making  such  settlements  legally  binding 
upon  both  parties  when  voluntarily  entered  into  by  both." 

In  the  account  of  conciliation  given  in  an  earlier  portion  of 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  155 

this  paper,  a  statement  has  been  made  regarding  conciliation  in 
the  rolling^  mills  of  this  State.  In  addition  to  what  is  stated 
there,  it  may  be  said  that  the  Wheeling  district  includes  mills 
in  Ohio,  and  that  nail  mills  at  Bellair,  Marten's  Ferry,  and 
Steubenville,  were  parties  to  the  conference  committees  that 
arranged  prices  at  Wheeling.  In  some  of  the  stove  founderies 
of  Cincinnati,  conference  committees  arranged  wages  for  several 
years ;  and  it  is  no  doubt  true  that  in  many  works  this  method 
has  been  adopted  to  avoid  trouble. 

Arbitration  in  the  Tuscarawas  Valley. 

Though  it  has  often  been  proposed  in  different  sections,  so  far 
as  we  have  been  able  to  learn,  arbitration  has  been  attempted  in 
but  one  section  of  this  State,  —  the  Tuscarawas  Valley. 

The  history  of  the  first  attempt  in  this  valley  is  given  by  Mr. 
Andrew  Roy  in  his  report  as  mine  inspector  for  1876,  to  which 
we  are  indebted  for  the  following  account :  — 

The  operators  of  the  Tuscarawas  Valley  proposed,  at  the 
beginning  of  December,  1874,  to  reduce  the  price  of  mining 
from  ninety  to  seventy  cents  per  ton.  The  officers  of  the 
Miners'  National  Association,  desirous  of  avoiding  a  strike,  and 
in  accordance  with  their  rules  of  establishing  boards  of  arbitra- 
tion for  the  settlement  of  wages  disputes,  proposed  that  a  joint 
conference  of  the  operators'  and  miners'  representatives  be  had 
to  discuss  the  question  in  dispute.  This  committee,  which  met 
in  the  city  of  Akron  on  the  17th  of  December,  unanimously 
agreed  to  refer  the  dispute  to  the  decision  of  a  board  of  arbi- 
trators. The  following  is  the  resolution  adopted  at  the  meet- 
ing : — 

Resolved,  That  the  present  differences  in  prices  between  the  operators 
and  miners  in  the  Tuscarawas  Valley  be  submitted  to  a  committee  of  three 
operators  and  three  miners,  who  shall  elect  an  umpire,  whose  decision  shall 
be  final  and  binding  on  both  parties." 

The  committee  consisted  of  Messrs.  Hanna,  Wagoner,  and 
Loomis  on  behalf  of  the  operators,  and  Messrs.  Thomson,  Pol- 
lock, and  Graham  on  behalf  of  the  miners.  At  the  suggestion 
of  the  miners'  representatives,  the  venerable  Judge  Andrews  of 
Cleveland  was  chosen  umpire.  The  matters  in  dispute  were 
ably  and  fairly  discussed,  neither  party  wishing  to  take  any 


156         INDUSTKIAL  CONCILIATION  AND  ARBITRATION. 


advantage.  The  condition  of  the  trade,  and  prices  paid  in 
other  districts,  were  stated  and  discussed.  The  decision  of  the 
umpire  was  as  follows :  — 

The  producers  and  miners  of  coal  in  the  Tuscarawas  Valley  having  sub- 
mitted for  my  determination  the  price  that,  in  the  present  condition  of  the 
coal  trade,  shall  be  paid  for  mining  coal  of  standard  thickness  in  said  valley 
(said  submission  being  made  with,  a  view  to  equalize  mining  in  said  valley 
with  mining  in  competing  districts),  and  the  said  parties,  by  their  respective 
committees,  appeared  before  me  at  the  office  of  Rhodes  &  Co.,  in  the  city  of 
Cleveland,  on  the  twenty-second  day  of  December,  A.D.  1874  ;  and  being 
fully  heard  in  the  premises,  and  their  statements  and  their  evidence  there- 
with submitted  having  been  duly  considered  by  me,  I  do  hereby  award  as 
follows  :  to  wit,  — 

First,  That  the  producers  in  the  Tuscarawas  Valley  shall  reduce  the  price 
of  powder,  oil,  and  rent  furnished  by  them  to  the  miners,  so  as  to  make 
them  correspond  with  the  prices  charged  for  the  same  respectively  by 
producers  in  the  Mahoning  Valley. 

Second,  That  the  said  producers  in  the  Tuscarawas  Valley  shall  pay  the 
miners  for  every  twenty-one  hundred  pounds  of  raked  coal,  such  as  is 
now  given,  of  standard  thickness  (that  is,  four  feet  and  over),  the  sum  of 
seventy-one  cents. 

(Signed)  S.  J.  ANDREWS. 

The  above  reward  was  accepted  and  subscribed  by  the  miners' 
representatives,  the  operators  pledging  themselves  to  pay  for 
all  "  extras  "  —  deficiency  work  —  on  the  basis  of  1870. 

For  the  purpose  of  adjusting  the  prices  of  deficiency  work, 
another  meeting  of  the  representatives  of  the  operators  and 
miners  of  the  valley  was  held  in  Massillon  on  the  22d  of 
January  following,  the  operators  being  represented  by  Messrs. 
Loomis,  Weaver,  Brewster,  Hanna,  P^aultz,  and  Millhoff,  and 
the  miners  by  Messrs.  Kirkly,  Jacobs,  Cummock,  Treat,  Young, 
Archibald,  and  Penburthy.  The  following  schedule  of  prices 
for  deficiency  work  was  agreed  to  by  this  committee  :  — 

"1.  To  pay  five  cents  per  ton  extra  for  mining  coal  on  every  three  inch 
drop  under  four  feet. 

"2.    For  turning  rooms,  two  and  a  half  and  three  dollars. 

"3.  To  pay  three  dollars  for  break-throughs  any  distance  under  nine 
feet,  and  over  nine  feet,  two  dollars  per  yard  for  the  whole  distance. 

"  4.  Wet  entries  and  wet  rooms  to  be  paid  a  fair  compensation,  and  to 
be  left  to  the  agreement  of  pit  boss  and  the  men ;  and  horsebacks  to  be  paid 
for  as  heretofore. 

"  5.  Break-throughs,  from  entry  to  entry,  fifty  cents  per  yard  less  than 
entry  driving  for  three  yards  or  less ;  and,  on  the  distance  over  three  yards, 
entry  price. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  157 


"6.  In  all  cases  where  the  roof  is  rotten  and  bad,  and  slate  and  dirt 
come  down  unavoidably,  the  man  shall  be  paid  five  cents  per  ton  on  the 
coal  for  every  six  inches.  But  where  the  roof  is  good,  and  this  occurs  from 
carelessness  or  neglect  on  part  of  miners,  no  compensation  shall  be  allowed. 
This  is  to  be  determined  by  the  pit  boss. 

"7.  Entry  driving  and  day  work  by  miners  to  be  reduced  in  the  same 
proportion  as  mining. 

"8.  In  all  cases  where  it  is  not  necessary  for  the  producer  to  work  that 
part  of  the  mine  where  deficiency  work  occurs,  he  may  do  so  on  application 
of  the  miners  by  special  contract. 

"9.  The  price  of  powder  to  be  four  dollars  per  keg,  and  oil  one  dollar 
and  twenty-five  cents  per  gallon;  it  being  understood  that  the  men  shall 
have  the  privilege  of  buying  each  wherever  they  choose. 

10.  In  cases  where  house  rent  has  been  advanced  in  proportion  to 
previous  advances  in  mining,  a  corresponding  reduction  will  be  made. 

*'  11.    House  coal  to  miners  at  lowest  wholesale  price." 

All  the  miners  resumed  work  under  the  ahove  arrangement, 
except  those  of  the  Crawford  Coal  Company.  The  miners  in 
the  employ  of  this  firm  wished  to  employ  a  check  weigh  it- aster, 
a  right  given  them  by  the  mining  law.  The  miners  wished  to 
make  no  interference  with  the  weighing  of  the  coal  or  with  the 
scales,  but  simply  wanted  to  employ  and  pay  a  man  to  see  their 
coal  fairly  weighed.  The  company  peremptorily  refused  to 
allow  this  to  be  done,  and  stopped  the  mine.  This  coal  firm 
urged  the  other  operators  to  sustain  them  against  the  demand 
of  the  miners  ;  but  they  refused  to  do  so,  asserting  that  it  was 
a  matter  with  which  they  had  no  concern,  and  was  moreover 
against  the  law  of  the  State. 

The  superintendent  of  the  Crawford  Coal  Company  then 
told  the  miners  of  that  firm  that  if  they  would  withdraw  their 
claim  for  a  check  weighmaster  the  company  would  raise  the 
price  of  mining  to  eighty  cents  per  ton,  being  nine  cents 
advance  over  the  award  of  the  umpire.  This  proposition  the 
miners  eagerly  accepted.  In  the  other  mines  of  the  valley,  the 
workmen  who  had  resumed  work  under  the  award  of  Judge 
Andrews,  seeing  the  Crawford  Coal  Company  voluntarily  raise 
the  price  to  eighty  cents  per  ton,  demanded  to  be  placed  on  the 
same  footing.  The  officers  of  the  Miners'  Union  advised  the 
miners  to  respect  the  award  of  the  arbitration  board,  and  to 
continue  work  at  seventy-one  cents  ;  but  no  attention  was  paid 
to  such  counsel. 

The  majority  of  the  miners  had  received  the  decision  of 
the  board  of  arbitration  in  a  sullen  spirit,  alleging  that  the 


158         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


reduction  of  nineteen  cents  was  uncalled  for  and  unjust ;  and 
when  they  saw  one  leading  coal  company  voluntarily  disregard 
an  award  in  favor  of  the  operators,  and  advance  wages  nine 
cents  on  the  ton,  they  became  confirmed  in  this  view.  All  the 
companies  conceded  the  demands  of  the  miners,  and  the  work 
of  the  arbitration  board  was  thrown  to  the  winds.  The  officers 
of  the  Miners'  Union  were  roundly  berated  for  not  securing 
better  terms. 

It  will  be  noted  that  the  cause  of  the  failure  of  this  attempt 
at  arbitration  was  very  similar  to  the  cause  of  the  failure  in  the 
anthracite  region;  but  here  the  men  had  not  even  the  excuse 
that  the  men  in  the  anthracite  region  had,  as  the  rates  of  wages 
of  the  men  that  struck  in  the  latter  region  were  confessedly  too 
low.  In  the  Tuscarawas  Valley,  however,  the  miners  for  a 
seemingly  temporary  advantage  were  willing  to  yield  a  safe- 
guard the  law  gave  them  against  fraud ;  and  it  is  very  evident 
that  the  company  would  not  be  willing  to  pay  nine  cents  a  ton 
more  than  other  mines,  unless  they  expected  some  advantage 
to  arise  from  not  having  a  check  weighmaster. 

A  second  attempt  was  made  in  the  same  valley  in  1877.  In 
August  of  that  year  the  miners  demanded  an  advance  in  the 
price  of  mining,  of  fifteen  cents  per  ton,  or  sixty  cents  to 
seventy-five.  The  operators  having  refused,  by  default,  to 
meet  a  committee  of  the  miners,  the  latter  decided  to  offer 
arbitration,  and  again  requested  the  operators  to  meet  them; 
the  offer  and  request  being  contained  in  the  following  letter, 
which  was  sent  to  the  operators :  — 

Gentlemen,  — The  miners  in  the  above  valley  in  your  several  employ, 
in  convention  assembled,  having  met  to  consider  the  result  of  the  joint 
meeting  held  in  Canal  Fulton  one  week  ago,  regret  that  the  employers  felt 
it  not  to  be  their  duty  to  meet  us  on  that  occasion,  and  show  cause  why  our 
demand  for  seventy-five  cents  per  ton  should  not  be  granted.  We  have 
keenly  felt  that  sixty  cents  per  ton  is  too  low  a  price  to  live  upon,  which 
fact  you  yourselves  have  acknowledged.  We  fully  realize  the  disastrous 
results  of  a  strike  to  the  employers  and  employed,  as  well  as  to  the  business 
community  generally. 

"Therefore,  in  order  to  avoid  the  disastrous  results  of  a  strike  to  the 
community  generally,  and  the  calumny  put  upon  the  miners  on  such  occa- 
sions, we  submit  the  following  proposition  :  — 

"  Resolved^  That  we,  the  miners  of  the  Tuscarawas  Valley  in  convention 
assembled,  do  agree  to  submit  the  present  demand  to  a  board  of  arbitration 
to  consist  of  six  miners  and  six  operators,  who  shall  agree  upon  an  umpire, 
whose  decision,  on  hearing  the  question  argued,  shall  be  final. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  159 


"  Resolved,  That  an  answer  to  or  against  this  proposition  shall  be  made 
within  the  13th  inst. 

"  Resolved^  That,  the  board  shall  meet  in  Akron  or  Massillon,  as  the 
employers  may  choose,  such  meeting  to  be  held  on  or  before  the  25th  inst. 

"  Resolved,  That  the  decision  of  the  umpire  shall  take  effect  from  the 
15th. 

''^Resolved,  That  in  case  the  employers  refuse  to  accept  this  means  of 
settling  disputes  between  them  and  their  employes,  that  they,  not  us,  are 
responsible  for  forcing  us  to  the  old  method,  a  strike,  to  settle  labor  dis- 
putes." 

The  operators  acceded  to  this  request  for  a  conference,  and  a 
joint  meeting  was  held  Aug.  25.  Propositions  as  a  basis  for 
arbitration  were  submitted  by  both  miners  and  operators,  neither 
of  which  were  agreed  upon,  and  the  meeting  adjourned  without 
date.  Through  correspondence,  however,  another  meeting  was 
arranged  for  at  Massillon,  which  was  held  Sept.  8,  at  which  the 
operators  offered  to  arbitrate  on  the  basis  proposed  by  the 
miners,  Aug.  25. 

The  miners'  committee,  however,  did  not  have  power  to  accept 
the  proposition,  but  submitted  it  to  a  meeting  of  the  miners,  at 
which  -the  following  proposition  was  agreed  to  :  — 

' '  The  miners  of  this  valley  accept  the  proposition  of  their  committee  at 
Akron,  on  Aug.  25,  which  was  accepted  by  the  operators  at  their  general 
meeting,  Sept.  7,  and  that  we  meet  the  operators  at  Massillon  on  Sept.  21,  on 
arbitration  ;  the  board  to  be  chosen  as  proposed  by  the  operators,  viz.,  each 
party  to  select  a  man,  and  they  choose  a  third  as  an  umpire,  whose  award 
shall  be  final. 

'*  The  price  so  awarded  by  the  umpire  to  be  the  minimum  price  of  mining. 

"  The  per  cent  of  the  relative  prices  of  1874  and  1877,  so  awarded,  to  be 
the  per  cent  to  be  paid  the  miners  on  all  advances  in  the  wholesale  price  of 
coal  in  the  Cleveland  market  in  the  future.  There  shall  be  a  standing  com- 
mittee of  three  miners  and  three  operators,  who  shall  adjust  all  differences 
between  employer  and  employe  in  the  future.  The  miners'  part  of  the  com- 
mittee to  have  access  to  the  companies'  books,  monthly  if  desired,  to  ascer- 
tain the  selling  price  of  coal  ;  two  months  preceding  and  two  months  following 
the  opening  of  navigation  in  each  year  to  be  chosen  to  determine  the  selling 
price  of  coal ;  viz.,  February,  March,  April,  and  May." 

The  operators  claimed  the  proposition  was  not  the  original 
one,  the  difference  being  in  the  months  which  should  decide  the 
selling  price  of  coal.  Finally,  on  Oct.  5,  Mr.  J.  P.  Burton,  on 
the  part  of  the  operators,  and  Mr.  John  Pollock,  on  the  part  of 
the  miners,  met  in  Massillon  as  arbitrators.  Mr.  Pollock  makes 
the  following  statement  of  the  result,  which  we  extract  from  the 


160         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Report  of  the  Ohio  Bureau  of  Labor  Statistics  for  1877,  which 
is  also  our  source  for  the  material  for  the  account  of  this  attempt 
at  arbitration :  — 

"The  arbitrator  for  the  operators  presented  in  writing  the  operators' 
proposition,  as  to  the  time  to  determine  the  selling  price  of  coal  from  Jan.  1 
to  Sept.  1  of  each  year.  To  this  proposition  I  could  not  agree,  for  two 
reasons  :  First,  at  a  general  meeting  of  miners,  Sept.  15,  it  was  agreed  to 
take  two  months  preceding  and  two  months  following  the  opening  of  naviga- 
tion ;  viz  ,  February,  March,  April,  and  May  ;  the  object  in  selecting  these 
months  being,  that  the  car  trade  before  and  the  lake  trade  after  the  opening 
of  navigation  commanded  different  prices;  and  these  four  months  it  was 
proper  to  strike  a  fair  average  of  the  different  prices.  Second,  the  operators 
were  responsible  for  delays  caused  in  not  arbitrating  ;  and  then  to  accept  of 
the  time  thus  spent  to  determine  the  selling  price  of  coal,  insisted  on  by  the 
operators,  would  leave  strong  grounds  for  believing  that  the  selling  price  of 
coal  had  been  cut  since  the  negotiations  commenced.  Mr.  Burton  raised  the 
point  that  navigation  seldom  opened  before  the  1st  of  May:  hence,  to  take 
the  above-named  four  months,  was  not  giving  two  months  after  the  opening 
of  navigation.  To  this  I  consented,  and  allowed  June  to  be  taken  in,  mak- 
ing two  and  a  half  months  before  and  after  the  opening  of  navigation.  The 
point  was  then  raised,  that  the  companies'  books  could  not  be  taken  from 
the  offices,  and  the  arbitration  would  have  to  be  in  Cleveland  ;  to  which  I 
consented  in  order  to  have  the  matter  settled.  The  arbitrator  for  the  opera- 
tors then  considered  it  necessary  to  take  into  consideration  the  difference  in 
cost  of  freight,  etc.,  in  1877  to  that  of  1874  ;  and  Mr.  Burton,  in  a  letter 
since,  considered  it  right  to  take  in  the  difference,  not  only  in  freight,  but  iu 
powder,  oil,  etc.  To  this  I  objected,  since  the  operators  refused  to  arbitrate 
on  the  selling  price  of  coal,  as  proposed  on  the  29th  of  August." 

Mr.  J.  F.  Rhodes,  of  the  operators'  committee,  in  a  letter  to 
the  Ohio  Bureau  says :  — 

"  The  long  and  short  of  it  is  simply  this  :  Aug.  25,  the  miners  made  a 
proposition  which  the  producers  did  not  that  day  accept,  but  which  they  did 
accept  on  Sept.  8,  with  one  or  two  modifications,  suggested  by  the  miners' 
committee. 

"  From  Sept.  8  to  Oct.  1  the  miners'  committee  attempted  to  drag  in  other 
questions,  but  at  last  came  back  to  their  original  proposition  of  Aug.  25, 
where  we,  the  producers,  had  stood  all  the  time  since  Sept.  8.  On  Oct.  5  or 
6,  we  sent  our  arbitrator  to  Massillon  to  meet  theirs,  when  he  was  met  by  a 
modification  of  the  Aug.  25  and  Sept.  8  proposition,  which,  on  his  return, 
he  submitted  to  the  producers'  committee.  The  producers'  committee  then 
declined  further  negotiations,  having  gone  to  the  extent  of  their  powers,  and 
considering  that  the  miners  had  not  acted  in  good  faith  towards  them. 
From  an  Associated  Press  despatch  of  Nov.  19,  1879,  it  appears  that  an 
attempt  was  again  made  in  this  valley  to  arbitrate,  the  miners  having  ap- 
pointed a  committee  of  six  to  meet  a  like  committee  of  the  operators,  with  a 
view  to  the  formation  of  a  board  of  arbitration.  I  am  unable  to  learn  that 
any  thing  resulted  from  this  action." 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  161 


The  Straiton  &  Storm  Board  of  Arbitration,  New 

York  City. 

The  most  interesting  of  all  the  efforts  at  industrial  arbitration 
in  this  country  is  that  in  the  extensive  cigar  manufactory  of 
Straiton  &  Storm,  New  York  City.  In  at  least  three  respects, 
outside  of  the  success  with  which  it  has  been  attended,  this 
board  is  noticeable.  In  the  first  place,  it  is  the  only  board  of 
arbitration  in  existence  in  this  country,  of  which  the  writer  has 
any  knowledge  ;  secondly,  it  is  the  only  one  that  has  survived 
attempts  to  settle  a  wages  difference ;  and,  thirdly,  in  its  com- 
position it  differs  materially  from  any  other  board  of  which  we 
have  any  knowledge.  As  will  be  seen  from  the  rules  given 
below,  the  Cigar  Makers'  Board  is  composed  of  nine  persons,  of 
whom  five,  or  a  majority,  are  employes,  giving  the  casting  vote 
in  case  of  a  division,  in  accordance  with  their  respective  interests, 
to  an  employe.  This  is  certainly  a  noticeable  feature  of  the 
board,  and  as  will  be  seen  from  their  letter  it  was  the  deliberate 
intention  of  Messrs.  Straiton  &  Storm  that  it  should  be  so.  A 
somewhat  analogous  feature  existed  in  the  board  in  connection 
with  the  hosiery  and  glove  trades  of  Nottingham,  under  the 
presidency  of  Mr.  A.  J.  Mundella  ;  when  a  casting  vote  was  given 
to  the  president  in  case  of  an  equal  division,  —  a  right  that  was 
exercised  by  Mr.  Mundella,  who  was  an  employer.  This  feature 
was  soon  abandoned,  however,  and  each  party  now  has  equal 
representation  and  vote. 

This  board  of  arbitration  grew  out  of  a  benefit  association 
organized  in  the  Straiton  &  Storm  manufactory  after  the  great 
strike  of  1876,  in  which  this  firm  are  reported  to  have  lost  forty 
thousand  dollars.  It  is  more  than  probable  that  the  constant 
intercommunication  between  employer  and  employed,  necessi- 
tated by  this  association,  led  to  the  breaking  down  of  the  barriers 
that  too  often  separate  those  two  classes,  and  fostered  that  mutual 
respect  and  confidence  that  furnish  not  only  the  necessary  basis 
for  the  formation  of  the  board,  but  which  makes  possible  its 
continued  existence,  and  successful  operation. 

The  board  was  formed  in  January,  1879.  The  reason  for  its 
existence  is  thus  admirably  given  in  the  preamble  to  the 
rules :  — 

Reviewing  the  past  four  years,  one  cannot  help  but  notice  the  injurious 
effects  produced  by  strikes,  both  to  the  employer  and  employe,  and  particu- 
21 


162         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


larly  to  the  latter  class;  and,  taking  into  consideration  that  these  strikes 
invariably  ended  in  failure,  resulting  in  a  gradual  reduction  instead  of  an 
advance  in  wages,  and  that  by  reason  of  these  strikes  an  abundant  quantity 
of  unemployed  labor  of  all  other  kinds  had  been  drawn  into  our  branch  of 
industry,  thus  considerably  increasing  the  productive  force  from  year  to  year, 
one  should  naturally  come  to  the  conclusion  that  plain  common  sense  should 
dictate  to  every  one  having  at  heart  their  own  interest  and  welfare,  that  the 
proper  time  has  come  for  the  devisement  of  practical  measures  to  protect  the 
interest  of  both  parties  concerned,  thus  effectually  and  permanently  closing 
the  chasm  now  existing  between  employer  and  employe. 

"  In  order  to  secure  this  object,  and  insure  its  permanent  existence,  it  is 
absolutely  necessary  that  inconsiderate  and  fierce  passions  heretofore  re- 
sorted to  must  give  way  to  wise  council,  and,  above  all,  peaceful  delibera- 
tions. 

*'  We,  therefore,  now  propose  to  leave  hereafter  all  matters  of  difference 
as  to  wages,  or  of  any  other  kind  and  nature  whatsoever,  to  a  court  of  arbi- 
tration. 

"  We  are  convinced  that  by  the  adoption  of  measures  suitable  to  the 
wants  of  the  times,  the  cigar  makers,  as  a  class,  will  be  vastly  benefited, 
and  their  condition  surely  advanced  in  the  community. 

"  Although  we  are  willing  to  concede  that  the  degrading,  demoralizing, 
and  filthy  system  of  '  tenement-house '  work  cannot  be  abolished  with  one 
stroke,  we  have  no  hesitation  in  stating  it  as  our  firm  belief  that  eventually 
the  moral  influence  which  the  adoption  of  our  plan  will  bring  to  bear  will 
materially  aid  in  gradually  diminishing  the  number  of  such  disgraceful  pest- 
houses. 

"  We  now  beg  to  offer  for  your  consideration  our  opinion  as  to  the  neces- 
sary and  proper  manner  of  construction  of  such  court  of  arbitration." 

The  rules  as  amended  November,  1880,  are  as  follows :  — 

Article  I. 
Cigar  Makers'  Board  of  Arbitration. 

Section  1.  There  shall  be  a  board  of  arbitration  composed  of  four 
cigar  makers,  one  packer  (to  be  elected  as  hereinafter  provided),  and  three 
foremen,  appointed  by  the  firm,  and  one  member  of  the  firm. 

Sect.  2.  These  together  shall  constitute  the  Cigar  Makers'  Board  of 
Arbitration,  to  whom  shall  be  submitted  all  questions  of  wages,  and  such 
other  things  as  may  be  in  dispute  between  employer  and  employes. 

Sect.  3.  They  shall  hear  such  evidence  as  may  be  necessary  to  a  proper 
understanding  of  the  questions  before  them,  and  then  proceed  to  call  the 
roll  and  vote  openly ;  and  the  action  of  the  majority  shall  be  binding  on  all 
parties  concerned. 

Article  II. 

Packers'  Board  of  Arbitration. 

Section  1.  There  shall  be  a  board  of  arbitration  composed  of  two  pack- 
ers, one  cigar  maker  (to  be  elected  as  hereinafter  provided),  the  packer  fore- 
man, and  one  member  of  the  firm. 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  163 


Sect.  2.  These  together  shall  constitute  the  Packers'  Board  of  Arbi- 
tration, to  whom  shall  be  submitted  all  questions  of  wages,  and  such  other 
matters  as  may  be  in  dispute  between  employer  and  employes. 

Sect.  3.  They  shall  hear  such  evidence  as  may  be  necessary  to  a  proper 
understanding  of  the  questions  before  them,  and  then  proceed  to  decide  by 
an  open  vote;  and  the  action  of  the  majority  shall  be  binding  on  all  parties 
concerned. 

Article  III. 
Electing  Cigar  Makers^  Delegates  on  Arbitration. 

Section  1.  There  shall  be  elected,  at  regular  annual  meetings,  by  bal- 
lot, from  each  of  the  three  departments,  five  delegates. 

Sect.  2.  One  week  after  such  election  the  delegates  so  elected  shall 
assemble  and  organize,  and  elect  by  ballot  four  of  their  number  (two  hand 
cigar  makers  and  two  rollers)  to  the  board  of  arbitration,  who  shall  hold 
office  for  one  year. 

Sect.  3.  Should  any  vacancies  occur  during  that  period  in  the  board  of 
arbitration,  the  remaining  delegates  shall  proceed  to  fill  such  vacancies  in 
the  same  manner  as  they  have  elected  the  first  four. 

Sect.  4.  Should  the  number  of  delegates  at  any  time  be  less  than  three, 
the  cigar  makers  shall  proceed,  by  ballot,  to  fill  the  whole  number  for  the 
unexpired  term ;  this  number  not  to  exceed  ten. 

Article  IV. 
Packers^  Delegates  on  Arbitration. 

Section  1.  There  shall  be  elected  at  the  regular  annual  meetings,  by 
ballot,  seven  packers. 

Sect.  2.  One  week  after  such  election  they  shall  assemble  and  organ- 
ize, and  elect  by  ballot  two  of  their  number  to  the  board  of  arbitration,  who 
shall  hold  office  for  one  year. 

Sect.  3.  Should  any  vacancies  occur  during  that  period  in  the  board  of 
arbitration,  the  remaining  delegates  shall  proceed  to  fill  such  vacancy  in  the 
same  manner  as  they  have  elected  the  first  two. 

Sect.  4.  Should  the  number  of  delegates  at  any  time  be  less  than  two, 
the  packers  shall  proceed,  by  ballot,  to  fill  the  whole  number  for  the  unex- 
pired term ;  this  number  not  to  exceed  four. 

Article  V. 

Section  1.  One  week  after  the  election  of  the  board  of  arbitration,  both 
the  Cigar  Makers'  and  the  Packers'  Board  of  Arbitration,  constituted  as 
above,  shall  meet  separately  and  organize. 

Sect.  2.  The  Cigar  Makers'  Board  shall  elect  one  from  the  packers'  del- 
egates, who  hereafter  shall  act  with  them  in  the  Cigar  Makers'  Board;  and 
the  Packers'  Board  shall  elect  one  from  the  cigar  makers'  delegates,  who 
thereafter  shall  act  with  them  in  the  Packers'  Board  of  Arbitration;  and 
vacancies  shall  be  filled  in  the  same  manner. 

Sect.  3.  At  all  meetings  the  firm  and  its  representatives  shall  consti- 
tute a  part  as  before  stated. 


164         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


Sect.  4.  All  this  being  complied  with,  the  board  will  be  ready  for  such 
business  as  may  come  before  it. 

Sect.  5.  At  no  time  shall  a  vote  affecting  the  interests  of  either  employ- 
ers or  employes  be  taken,  except  in  presence  of  a  full  board. 

Sect.  6.  Should  a  difference  arise  between  the  employers  and  the 
bunchmakers,  such  case  shall  also  be  submitted  to  the  Cigar  Makers'  Board 
of  Arbitration,  which  shall  be  enlarged  by  two  representatives  of  the  firm, 
and  two  bunchmakers,  who  shall  be  members  of  the  board  for  that  case  only. 

BY-LAWS. 
Article  I. 

Section  1.  The  secretary  shall  notify  (if  requested  by  a  majority  of  the 
men  interested)  each  member  of  the  board  of  the  time  and  place  of  meeting, 
within  three  days  of  such  meeting  taking  place. 

Sect.  2.  The  meeting  shall  be  called  to  order  within  fifteen  minutes 
after  the  appointed  time. 

Sect.  3.  Six  members  of  the  board  shall  constitute  a  quorum  for  the 
transaction  of  all  business,  except  the  taking  of  the  final  vote. 

Article  II. 

Section  1.  Where  a  meeting  of  the  board  has  been  called  for  the  pur- 
pose of  adjusting  any  difference  between  employers  and  employes,  when  such 
subject  has  been  brought  properly  before  the  board,  meetings  shall  be  held 
daily  until  the  matter  before  them  has  been  disposed  of. 

Sect.  2.  At  the  meeting  at  which  a  final  vote  is  to  be  taken,  all  dele- 
gates shall  be  present,  so  that  in  case  any  member  of  the  board  is  absent  his 
place  can  be  filled  immediately  (sic). 

Article  III. 

Section  1.  One  of  every  fifty  employes  shall  have  the  privilege  to  ap- 
pear before  the  board  to  represent  their  case ;  but  in  no  case  shall  such  repre- 
sentation be  less  than  three. 

Sect.  2.  Such  representatives  may  present  their  views  either  in  writing 
or  otherwise. 

Sect.  3.  If  verbal,  they  shall  confine  their  remarks  to  the  subject,  and 
not  occupy  more  than  fifteen  minutes. 

Sect.  4.  In  no  case  shall  these  representatives  enter  into  any  discussion 
other  than  a  plain  statement  of  their  case,  and  answer  such  questions  as  the 
members  of  the  board  may  ask. 

Sect.  5.  Such  representatives  shall  not  be  members  of  the  board,  or 
delegates. 

Article  IV. 

When  the  final  vote  is  taken,  the  names  shall  be  called  in  alphabetical 
order,  and  the  votes  to  be  given  in  ayes  or  nays. 

The  first  use  made  of  this  board  was  on  the  26th  of  April, 
1879,  upon  an  application  for  an  advance  on  six  different  styles 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  165 

of  cigars,  the  shape  of  which  had  been  changed  in  consequence 
of  believing  the  change  to  be  an  improvement.  The  cigar 
makers  claimed  they  could  not  earn  as  much  making  the  new 
shapes  as  they  could  making  the  old.  Each  cigar  was  taken  up 
by  itself,  and  voted  as  follows  :  "  Shall  there  be  an  advance  on 
this  cigar  ?  "  and  in  four  instances  out  of  six  it  was  unani- 
mously decided  in  the  affirmative,  and  in  the  other  two  instances 
it  was  voted  unanimously  that  there  should  be  no  advance. 
As  an  evidence  of  the  spirit  of  fairness  and  justice  of  the  men 
on  that  occasion,  it  may  be  said  that  one  of  the  men  on  the 
committee  was  making  one  of  the  identical  cigars  passed  upon, 
and  he  voted  that  there  should  be  no  advance  on  that  style  of 
cigar.  The  next  question  was,  taking  each  cigar  separately, 
"  How  much  shall  the  advance  be  ?  "  Of  the  four  sizes  advanced, 
three  were  advanced  one  dollar  each,  and  one  was  advanced 
fifty  cents. 

The  second  arbitration  was  held  July  12,  1879.  From  a 
statement  that  appeared  in  "  The  New  York  Sun  "  we  condense 
the  following  account  of  the  meeting  :  — 

It  was  called  at  the  request  of  Mr.  Storm,  to  dispose  of  a 
petition  presented  by  the  "  rollers,"  on  Thursday  evening,  for  an 
increase  of  their  rate  of  pay  fifty  cents  per  thousand.  Mr. 
Storm  told  the  committee  presenting  the  petition  that  the  firm 
could  ill  afford  to  make  the  increase,  but,  if  the  board  of  arbi- 
tration should  decide  against  them,  they  would  not  hesitate  in 
obeying  the  decision.  The  committee  retired  well  pleased,  and 
the  work  went  on  in  the  manufactory  as  smoothly  as  ever  until 
the  hour  for  closing.  Then  the  members  of  the  board  of  arbi- 
tration, excepting  Mr.  Storm,  who  was  detained  by  business, 
proceeded  to  the  packing  room,  and  seated  themselves  in  a  semi- 
circle about  a  table.  Many  of  their  fellow  workmen  entered, 
and  provided  themselves  without  any  formalities  with  seats. 
Presently  Mr.  Storm  came  in,  and  took  an  inconspicuous  seat 
among  his  fellow  members  of  the  board,  and  Mr.  Straiton  chose 
a  chair  among  the  workingmen.  The  petition  of  the  rollers  was 
read  both  in  English  and  German.  Then  President  Huth 
invited  Mr.  Storm  to  give  the  reasons  of  the  firm  for  declining 
to  grant  the  increase,  which  he  did.  There  were  addresses  by 
the  representatives  of  the  employes  in  the  board,  and  by  "  roll- 
ers "  among  the  spectators.  The  purport  of  every  address  was 
a  strong  appeal  for  the  increase,  and  that  it  would  produce  a 


166         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


general  increase  throughont  the  city.  Not  a  voice  was  raised 
above  the  pitch  of  quiet  earnestness,  nor  was  any  harsh  word 
uttered.  Mr.  Storm  replied,  and  then  President  Huth  declared 
the  discussion  closed. 

"  There  are  three  questions  before  the  board,"  he  said.  "  I 
ask  for  a  vote  upon  the  first  question ;  Shall  there  be  an  in- 
crease ?  " 

Ay,"  was  the  response  of  the  other  members,  including 
Mr.  Storm. 

"  Now  for  the  second  question  :  Shall  the  increase  be  fifty 
cents  per  thousand  ?  " 

Ay,"  was  again  the  voice  of  the  other  members,  still  includ- 
ing Mr.  Storm. 

"  The  third  question  is  now  in  order :  Shall  the  increase  go 
into  effect  at  once  ?  " 

"  I  offer  the  amendment  that  it  go  into  effect  two  weeks 
hence,"  said  Mr.  Storm.  "  The  firm  have  orders  on  hand  for 
two  million  cigars  ;  and,  if  we  are  compelled  to  pay  fifty  cents 
per  thousand  more  for  them  than  we  calculated  upon,  we  shall 
lose  one  thousand  dollars.  But,  on  second  thought,  I  will  with- 
draw the  amendment." 

"I  move  as  an  amendment,"  Mr.  Sucker  said,  "that  the 
increase  go  into  effect  a  week  from  to-day.  That's  a  fair  com- 
promise." Five  votes  were  given  for  the  amendment,  and  three 
against  it ;  and  then  Mr.  Storm's  turn  came.  "  Let  me  see  how 
the  vote  is,"  he  said,  leaning  over  the  teller's  shoulder.  "Oh," 
he  added,  "  I  vote  for  the  amendment,  and  move  that  the  vote 
be  declared  unanimous."  Mr.  Storm's  motion  was  adopted,  and 
the  board  adjourned. 

On  application  to  Messrs.  Straiton  &  Storm  for  a  statement 
of  the  history  of  the  board,  and  their  views  regarding  its  bene- 
fit and  efficiency,  they  kindly  replied  that  they  had  laid  the 
matter  before  the  board,  which  had  appointed  a  committee  of 
employes  to  present  their  views,  which  would  be  supplemented 
by  the  views  of  the  firm: 

These  two  documents,  which  are  notable  ones  in  the  history 
of  labor,  are  given  in  full  below. 

New  York,  Nov.  29,  1880. 

Joseph  D.  Weeks,  Esq. 

Dear  Sir,  — In  conformity  with  your  request,  we,  the  employes  of  Messrs. 
Straiton  &  Storm,  send  you  the  following  information  concerning  our  board 
of  arbitration. 


INDUSTRIAL  CONCILIATION  AND  ARBITKATION.  167 


For  a  sketch  of  its  organization,  and  the  causes  that  led  to  its  formation, 
we  would  respectfully  refer  to  the  constitution  and  its  preamble. 

The  board,  which  has  been  in  existence  since  January,  1879,  has  been 
used  four  times  up  to  date,  with  the  following  results  :  — 

1.  On  April  26,  1879,  when  six  different  kinds  of  hand-made  cigars  were 
changed  in  their  shape,  the  men  making  them  claiming  to  be  entitled  to  an 
advance  of  $2,  |1.50,  and  $1  per  thousand,  respectively.  Result:  An  ad- 
vance of  $1  was  granted  on  four  kinds,  —  two  kinds  remaining  at  the  old 
standard. 

2.  On  July  12,  1879,  when  the  cigar  rollers  asked  for  an  advance  of  fifty 
cents  per  thousand,  which  was  granted. 

3.  Oct.  11,  1879,  whgn  the  bunchmakers  asked  for  an  increase  of  twenty- 
five  cents  per  thousand,  which  was  rejected;  but  an  advance  of  ten  cents 
was  granted  on  some,  while  the  others  remained  at  the  old  price,  which 
failed  to  give  entire  satisfaction  to  all  of  that  branch. 

4.  April  20,  1880,  when  the  hand  cigar  makers  asked  for  an  advance  of 
one  dollar  per  thousand,  the  rollers  fifty  cents,  and  the  bunchmakers  twenty- 
five  cents.  Remit:  The  hand  made  cigars  received  an  advance  of  fifty  cents 
per  thousand,  with  the  exception  of  one  kind,  which  remained  at  the  old 
price  ;  the  rollers  received  an  advance  of  forty  cents,  and  the  bunchmakers 
ten  cents  per  thousand. 

The  Packers'  Board  has  been  used  on  July  12,  1880,  when  an  increase  of 
seven  and  a  half  cents  per  thousand  was  asked  for,  to  establish  former  price. 
The  demand  was  granted. 

We,  the  employes  of  Messrs.  Straiton  &  Storm,  are  convinced  that  the 
board  of  arbitration  has  been  a  success,  and  the  objects  which  it  had  in 
view,  and  which  led  to  its*  formation,  have  been  fully  realized,  and  that  it 
has  worked  to  our  entire  satisfaction. 

We  have  also  formed  a  beneficial  society,  where  every  employe  pays  five 
cents  per  week,  and,  the  firm  having  contributed  liberally  towards  it,  we 
were  enabled  to  pay  to  every  sick  member  a  weekly  benefit  of  five  dollars, 
and,  in  case  of  death,  one  hundred  dollars.  This  has  also  worked  to  our 
satisfaction. 


Hon.  Joseph  D.  Weeks. 

Dear  Sir,  —  Agreeably  as  per  our  letter  of  the  1st  inst.,  we  beg  to  hand 
you  enclosed  report  of  meeting  of  our  board  of  arbitration,  held  on  the 


P.  WALDOCK, 
GEORGE  MANN",  Jun., 
EMIL  ROESSERT, 
C.  SCHRAEDER, 
JOHN  SCHMITT, 
JOHN  JOCHUM, 
HENRY  CORODIE, 
RICHARD  HUNKE, 
W.  KRUSE, 
F.  W.  REHBOCK, 
FRED.  STRADE, 


LOUIS  SCHROEDER, 
JOHN  JINDRACK, 
HENRY  ZIPPERIAN, 
JOSEPH  MARTIN, 
R.  T.  C.  WALDECK, 
JOHN  PLERKA, 
MICHAEL  HUTH, 
FRANK  HORR, 
GUSTAN  ANE, 
HUGO  FINSTERINI, 


Delegates  representing  the 

Board  of  Arbitration. 


New  York,  Dec.  4,  1880. 


168         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


29th  ult.  This  meeting  was  called  by  our  board  of  arbitration,  and  the 
names  attached  to  it  are  the  delegates  chosen  by  our  workmen  to  act  jointly 
with  the  members  of  the  board  to  prepare  this  report. 

It  is  therefore  as  correct  as  it  can  be,  and  represents  the  feelings  of  our 
workmen  as  truly  as  in  their  own  language  they  can  describe  it.  It  has  not 
been  dictated  in  any  way  by  us,  and  you  must,  therefore,  accept  it  as  the 
sincere  and  earnest  conviction  of  our  people. 

The  principle  of  arbitration  is  evidently  not  a  new  one  to  you  ;  but  the 
great  difficulty  that  always  presents  itself  has  been,  to  put  theory  into 
practice. 

All  interests,  whether  they  be  those  of  employer  or  employed,  are  natu-~ 
rally  selfish  ;  and  our  joint  aim  should  be  to  harmonize  these,  and  teach 
them  respectively  that  at  a  certain  point  their  interests  become  one  and  the 
same  ;  if  they  are  but  honest  in  purpose,  and  respect  the  rights  which  belong 
to  each,  there  ought  not  to  be  any  trouble  in  adjusting  any  difficulties  which 
might  arise  between  employer  and  employe.  It  is  true,  there  are  a  great 
many  workmen  who  believe  that  capital  is  the  natural  enemy  of  labor,  and 
they  consequently  look  with  much  distrust  upon  any  thing  that  comes  from 
the  capitalist  or  employer,  and  are  either  unwilling  or  unable  to  realize  that 
any  good  can  come  from  a  mutual  compact  in  which  labor  constitutes  one 
half  and  capital  the  other  ;  and  we  regret  to  say,  that  capitalists  are  not 
altogether  free  from  this  bigotry,  and  many  of  them  believe  that  labor  is 
constantly  on  the  alert  to  wrench  something  from  capitalists  by  force  :  con- 
sequently both  interests  are  suspicious  of  each  other,  and  wanting  in  faith, 
and  the  conclusion  is  reached,  that  they  are  antagonistic,  and  each  and 
every  successive  strife  in  which  they  are  engaged  seems  to  strengthen  this 
belief,  and,  on  the  face  of  it,  it  would  seem  reasonable  to  suppose  that  they 
were  correct. 

Labor  makes  a  demand  upon  capital,  for  instance,  and  the  capitalist  deems 
it  exorbitant  and  untimely,  feels  angered  at  the  demand,  either  at  its  mag- 
nitude, or  the  time  and  manner  in  which  it  is  made.  The  demand  is  re- 
fused in  toto :  labor  strikes,  and  assumes  a  false  position  ;  capital  follows  by 
a  lock-out,  which  is  also  a  false  position. 

In  both  cases  reason  has  lost  its  sway,  and  passion  has  taken  its  place, 
and  the  two  interests  are  determined  to  fight  it  out  to  the  bitter  end  ;  and 
after  the  losses  have  been  sufficiently  great  on  both  sides,  and  when  the 
sufferings  of  labor  and  the  losses  of  capital  become  unbearable,  then  one  or 
the  other  occasionally  bows  to  the  inevitable,  and  yields  absolutely  ;  and, 
whether  it  is  capital  or  labor  that  yields,  it  is  always  with  the  determination 
to  renew  the  strife  ;  or,  in  some  cases,  a  compromise  is  brought  about,  which 
probably  could  have  been  done  in  the  first  twenty-four  hours,  had  the  two 
interests  accorded  to  one  another  certain  rights  which  each  was  bound  to 
respect. 

The  losses  incurred,  be  it  either  by  capital  or  labor,  have  benefited  no  one, 
and,  whatever  the  results  may  have  been,  the  reimbursement  of  these  losses 
is  impossible. 

If  these  are  facts,  can  it  be  denied  that  the  interests  of  capital  and  labor 
are  common? 

We  will  admit  that  arbitration  has  its  difficulties  ;  it  is  necessary  that 


INDUSTRIAL  CONCILIATION  AND  ARBITKATION.  169 


those  becoming  parties  to  such  a  compact  should  be  guided  by  an  honesty 
of  purpose  and  a  keen  sense  of  justice,  and  an  ordinary  amount  of  intelli- 
gence is  requisite.  The  employer  very  frequently  holds  himself  aloof,  is 
unwilling  to  have  any  intercourse  whatever  with  his  employes  except  in  that 
pertaining  to  his  work,  for  fear  that  his  self-respect  might  be  compromised. 

We  think  this  a  mistake.  If  the  employer,  by  his  great  intercourse  with 
the  commerce  of  the  world,  has  it  in  his  power  to  enlighten  the  employe, 
and  fails  to  avail  himself  of  it,  is  not  he  in  a  measure  answerable?  If  those 
who  work  for  him,  and  who  are  constantly  studying  out  their  own  respec- 
tive interests  as  they  understand  them,  should  be  led  or  allow  themselves  to 
be  drawn  into  a  false  position,  or  contrary  to  the  dictates  of  reason,  and  he 
(the  employer)  refuses  to  reason  with  them,  they  are  left  to  the  mercy  of 
agitators  and  demagogues,  who  usually  profit  by  their  (the  workmen's) 
misfortunes. 

We  think  that  in  a  board  of  arbitration  these  things  are  obviated,  and 
we  also  think  that  the  employer  should  consult  directly  with  the  representa- 
tives of  his  employes. 

The  employer,  by  his  upright  dealings  with  his  employes,  is  sure  to  gain 
the  respect  of  his  workmen. 

He  insists  at  all  times  to  deal  with  facts,  and  not  with  visionary  theories  ; 
and,  in  a  board  composed  of  both  interests,  in  order  to  work  at  all,  either 
one  or  the  other  must  have  the  majority. 

Now,  the  workman  would  look  with  much  suspicion  upon  the  board  of 
arbitration  in  which  the  employer  had  the  majority. 

Say  again  that  the  workman  is  naturally  suspicious  of  his  employer. 
He  has  nothing  but  his  labor,  and  guards  the  interest  surrounding  it  jeal- 
ously. You  will  perceive  that  we  have  yielded  the  deciding  voice  to  the 
workmen,  and  at  first  sight  this  would  seem  to  be  a  weakness  ;  but  we  think 
not. 

The  deciding  member,  however,  is  taken  from  a  different  branch  of  the 
business,  and  is  supposed  to  be  impartial. 

It  must  not  be  forgotten  that  this  board  is  a  calm  deliberative  body,  in 
which  passion  plays  no  part,  and  whose  members  are  fully  alive  to  the 
responsibilities  imposed  upon  them. 

Its  functions  are  to  adjust  the  prices  of  labor  in  conformity  with  the  cir- 
cumstances which  present  themselves.  Such  a  board  has  no  place  when 
capitalists  needlessly  oppress  labor,  and  their  sticcess  lasts  only  so  long  as 
they  are  enabled  to  feed  upon  their  (the  workmen's)  misfortunes. 

But  it  is  intended,  or  rather  can  only  be  used,  where  the  employer  pos- 
sesses the  necessary  qualifications  befitting  a  successful  manufacturer,  and 
where  they  are  enabled  to  pay  such  wages  as  are  generally  paid  throughout 
the  trade  for  like  work.    With  them  such  a  board  of  arbitration  is  possible. 

The  employer  must  gain  the  confidence  of  his  men  or  employes,  and  con- 
vince them  that  he  seeks  that  only  which  is  just  and  equitable. 

That  being  established,  his  workmen  will  be  likely  to  meet  him  in  a  kin- 
dred spirit. 

Our  experience  has  been,  that  at  no  time  during  the  operation  of  our 
board  have  the  lines  been  sharply  drawn;  or,  in  other  words,  the  vote  has 
at  no  time  been  four  to  five.    True,  it  has  not  been  as  yet  so  severely  tested 
22 


170         INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


as  it  may  be  at  some  future  time,  because  during  its  existence  there  has  been 
a  general  advance  of  labor,  and  it  has  simply  been  a  question  as  to  how 
much  these  advances  were  to  be,  from  time  to  time;  and  you  will  observe  by 
the  report  of  our  employes  that  sometimes  the  demand  has  been  considerably 
modified,  and  on  other  occasions  not  granted  at  all;  and,  as  an  evidence  of 
their  sense  of  justice,  we  will  cite  an  instance. 

There  was  a  demand  made  for  a  dollar  per  thousand  on  certain  classes  of 
our  fine  work  which  came  in  with  other  matters  before  the  board.  Half  a 
dollar  was  granted  this  particular  branch  by  the  arbitrators;  and  we  deemed 
it  just,  immediately  afterward,  to  allow  them  another  half-dollar. 

We  found  by  careful  examination  that  they  were  justly  entitled  to  it. 

They  preferred  to  take  the  lesser  amount  than  feel  that  they  had  been 
unjust,  or  had  hampered  their  employers;  for  we  asserted  at  the  time,  to 
grant  the  dollar  would  embarrass  us  in  the  pursuit  of  this  particular  branch 
of  business,  and  we  contended  that  they  had  no  right  to  impose  any  thing 
upon  us  by  which  our  business  would  be  in  any  way  curtailed  :  hence  the 
above  result. 

To  sum  up,  we  think  that  the  principle  of  arbitration  has  worked  to  the 
benefit  of  both  ourselves  and  our  employes,  and  we  think  that  the  moral 
effect  upon  the  trade  in  general  has  been  beneficial. 

While  there  has  been  a  general  advance  in  labor  throughout  our  branch 
of  business,  it  has  been  in  most  cases  accomplished  without  any  strikes. 

Our  workpeople,  by  their  number  and  intelligence,  occupy  a  position  by 
which  they  exercise  a  large  influence  upon  their  fellow  workmen. 

We  have  in  this  report,  we  think,  covered  all  your  interrogatories,  and 
hope  its  workings  will  redound  to  the  benefit  of  other  interests. 

We  have  the  honor  to  remain,  dear  sir. 

Yours  very  respectfully, 
(Signed)  STRAITON  &  STORM. 

These  statements,  relative  to  the  only  attempt  at  arbitration 
in  New  York,  of  which  I  have  been  able  to  gather  any  infor- 
mation, require  no  comment  from  me  ;  and  with  them  I  close 
my  report. 

Very  respectfully, 

JOSEPH  D.  WEEKS. 


CONCLUSION. 

The  settlement  of  disputes  arising  between  employers  and 
employed,  by  such  means  as  will  insure  the  peaceful  co-opera- 
tion of  both  parties,  is  a  result  which  should  be  hailed  by  all  as 
a  step  in  advance,  and  indicates,  whenever  tried,  a  desire  to 
adjust  those  questions  which  have  been  so  fruitful  of  strikes 
and  consequent  distress. 

Manufacturers  combine,  dealers  combine,  operatives  combine, 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  171 


and  the  results  of  all  such  combinations  usually  work  injuri- 
ously to  the  parties  engaged ;  and  yet  the  right  of  grocery 
dealers  to  agree,  in  association,  on  prices  for  necessary  articles 
of  food,  or  of  railroad  officials  to  say  what  wage  they  will  pay 
to  their  engineers,  or  of  the  engineers  to  hold  their  labor  at  a 
higher  rate,  or  for  the  weavers  in  a  mill  to  assert,  after  consulta- 
tion, that  they  will  charge  for  their  labor,  which  is  theirs  to  sell, 
after  such  a  date,  so  much  per  3^ard  or  cut,  cannot  be  ques- 
tioned as  a  right ;  but  when  the  welfare  of  many  is  concerned 
in  arbitrary  action,  and  when  prices  are  forced  by  either  side, 
so  much  temper  enters  into  the  question  that  the  principle  in- 
volved is  often  lost  sight  of,  and  the  dispute  becomes  one  of 
will,  and  the  consequences  are  usually  the  reverse  of  those 
sought.  The  age  of  lock-outs  and  strikes  is  fast  passing  away, 
and  the  rule  of  reason  is  rapidly  asserting  itself ;  and,  when  it 
shall  hold  sway,  capital  and  labor  will  learn  that  their  interests 
are  reciprocal  and  not  antagonistic.  Much  must  be  learned, 
and  much  unlearned  on  each  side  before  the  two  interests  can 
be  brought  to  the  full  acknowledgment  of  each  other's  rights 
and  duties ;  and  any  information  which  will  tend  in  any  degree 
to  the  establishment  of  better  relations  between  the  employer 
and  the  employed  should  be  freely  circulated. 

Arbitration  in  industrial  matters  is  one  of  the  highest  and 
broadest  features  of  co-operation,  and  at  the  same  time  one  of 
the  simplest  methods  for  restoring  harmony  where  conflict 
exists. 

Do  the  attempts  recited  teach  any  thing  of  value  to  the  man- 
ufacturers and  employes  of  this  State  ? 

It  seems  that  in  England  legislative  provisions  as  to  arbitra- 
tion have  not  been  applied,  the  efforts  there  having  been,  for 
the  most  part,  voluntary.  No  such  legislation  exists  either  in 
Pennsylvania  or  in  Ohio.  While  the  attempts  in  Ohio  to  se- 
cure a  law  for  the  establishment  of  boards  of  arbitration,  re- 
ferred to  by  Mr.  Weeks,  have  failed,  Ohio  has  a  law  (Rev.  Stats., 
sect.  5,601)  which  is  very  broad,  applicable  to  the  settlement 
of  all  civil  disputes,  and  which  covers  the  matter  of  industrial 
controversies,  provided  both  parties  really  desire  to  adjust  the 
points  in  dispute.  The  first  section  of  this  act  reads  as  fol- 
lows :  — 

"  All  persons  who  have  any  controversy,  except  when  the  possession  or 
title  of  real  estate  may  come  in  question,  may  submit  such  controversy  to 


172 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION. 


the  arbitrament  or  umpirage  of  any  person  or  persons,  to  be  mutually  agreed 
upon  by  the  parties,  and  they  may  make  such  submission  a  rule  of  any  court 
of  record  in  the  State." 

The  other  sections  of  the  law  simply  provide  for  the  enforce- 
ment of  the  decisions  resulting  from  arbitration. 

All  States  have  similar  provisions  of  law,  but  they  are  not  so 
broad  and  comprehensive  as  the  Ohio  law.  No  advantages,  as 
a  rule,  can  be  taken  of  such  provisions,  except  after  strikes  and 
lock-outs  have  been  inaugurated.  The  necessity  in  industrial 
arbitrations  is  the  settlement  of  difficulties  after  a  demand  from 
either  side  has  been  made,  and  before  such  demand  has  been 
resisted.  Industrial  conciliation  precedes  this  even,  and  under- 
takes not  only  to  harmonize  the  features  of  the  demand,  but  to 
avoid  the  necessity  of  submission  to  arbitration.  Legislation 
can  neither  force  parties  to  resort  to  arbitration  to  settle  exist- 
ing disputes,  nor  to  attempt  conciliatory  measures  to  prevent  a 
rupture :  legislation  can,  undoubtedly,  invest  the  results  of 
industrial  arbitration  with  the  sancity  of  decisions  of  a  court ; 
but  this  is  all  legislation  can  do,  and  it  is  a  serious  question 
whether  it  is  wise  or  just  even  to  do  this.  It  seems  reasonable 
to  suppose  that  if  the  decision  of  a  board  of  industrial  arbitra- 
tion was  by  law  to  partake  of  the  character  of  an  award,  and 
become  a  decision  or  judgment  of  a  court  of  record,  there  being 
no  legislative  power  to  compel  parties  to  resort  to  such  boards 
for  the  settlement  of  disputes,  such  law  would  embarrass  rather 
than  facilitate  voluntary  attempts  to  secure  arbitration. 

The  real  practical  lesson  to  be  drawn  from  the  valuable  his- 
tory of  arbitration  reported  by  Mr.  Weeks  is,  that  our  textile 
manufacturers  can,  in  association  with  intelligent  operatives, 
construct  a  sliding  scale  of  wages,  on  the  basis  of  cotton  or 
print  cloths,  or  some  other  leading  article,  either  of  consump- 
tion or  of  product,  which  shall  be  equitable,  and  which  shall 
adjust  itself  to  the  market  in  such  a  way  as  to  avoid  all  dis- 
putes. For  instance,  if  on  the  basis  of  five  cents  per  yard  for 
print  cloth,  a  certain  price  per  cut  for  weaving  rules,  it  could 
be  easily  determined  what  reduction  per  cut  should  be  made 
when  four  and  a  half  cents  was  the  market  price  for  print  cloth, 
and  what  increase  when  five  and  a  half  cents  ruled. 

The  pa}^  of  spinners  could  be  adjusted  in  the  same  manner. 

The  sliding  scale  seems  to  be  the  tangible  and  practical  result 
of  the  attempts  in  Ohio  and  Pennsylvania.    A  careful  study  of 


INDUSTRIAL  CONCILIATION  AND  ARBITRATION.  173 

the  history  of  these  attempts  proves  that  where  the  agreement 
has  been  broken  it  has  been  through  causes  not  fully  entering 
into  the  matter.  Such  study  also  proves  that  if  a  sliding  scale 
of  wages,  adjusted  to  market  prices,  can  be  adopted  by  boards 
of  arbitration  in  the  iron  and  coal  districts,  there  should  be  no 
hesitation  in  making  the  trial  in  the  industries  of  Massachu- 
setts. This  suggestion  is  made  with  the  sincere  hope  that, 
without  waiting  for  one  or  the  other  party  to  make  the  over- 
tures, the  proposition  will  be  promptly  made  and  promptly 
accepted,  for  a  board  of  arbitration  to  settle  upon  a  scale  of 
wages  whenever  a  dispute  arises. 

If  all  parties  engaged  in  production  will  disabuse  themselves 
of  the  idea  of  class,  and  freely  confer  together  as  associates,  as 
they  are,  they  will  come  to  the  same  conclusions  as  those  arrived 
at  by  the  Straiton  &  Storm  people,  whose  experience  presents  a 
most  interesting  chapter  in  the  history  of  labor. 


